Singapore’s GIC and Xander Group have bought an industrial park in India for around 2,200 crores (€244m) from a vehicle jointly owned by developer Shapoorji Pallonji and German insurer Allianz.
The buyers have acquired all the securities held in TSI Business Parks, which holds the 2.4m sqft Waverock park, a grade-A IT special economic zone, located in Gachibowli in Hyderabad.
Arpit Singh, partner at Xander Investment Management, said Waverock was a valuable addition to the firm’s existing office portfolio in India and would enable Xander to offer existing and new tenants premium space in another gateway Indian city.
Xander Group has been investing in India for the past two decades, having acquired or developed more than 100m sqft of diversified assets from office to townships and hotels.
For GIC, it is a return visit. It previously had an office joint venture in Waverock with Tishman Speyer, which developed the asset almost a decade ago. They sold it to the Allianz-Shapoorji Pallonji platform in 2019.
Rajesh Agarwal, CEO at Shapoorji Pallonji Investment Advisors, the real estate arm of Shapoorji Pallonji group, said: “This transaction underlines the inherent attractiveness of the Indian real estate market.”
“The India office market has proven to be extremely resilient, and investors consistently share this view,” said Stuart Crow, CEO, Capital Markets, Asia Pacific, JLL, which represented the seller in the transaction.
He added: “Coupled with the fact that Waverock has a long track record of high occupancy and rental outperformance, international investors were naturally attracted to the fundamentals and growth prospects of this piece of the Indian market.”
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