Category — Real Estate

Blackstone’s Strategy in India Yields Rich Dividends

Tuhin Parikh, senior managing director for real estate in Mumbai at the New York City-based PE and asset management firm Blackstone, has aggregated a 100-million-sqft portfolio in India. Parikh and Blackstone scripted a gold rush into the country’s rent-yielding office spaces, which saw Brookfield Asset Management, Qatar Investment Authority and others investing in India.

The Times of India reports: Parikh struck acquisitions, joint ventures and made strategic investments to build the India portfolio that dwarfs Goliaths such as Boston Properties and Vornado Realty in the U.S. Now, Blackstone plans to list one of its joint ventures, Embassy Office Parks, which bankers expect to fetch a $4-5 billion valuation. Later this year, Embassy REIT will list 35 million sq ft operational and pre-leased offices, with $240 million in annual rentals, to raise as much as $1 billion. This provides both Blackstone and Embassy with liquid shares in a  publicly listed trust, offering inflation-hedged returns to investors fleeing gold and residential markets.

Real Estate

Through strong local partners and outright acquisitions Parikh has 27 projects on the ground across six cities in India. Global investors Canadian Pension Plan and GIC of Singapore, among others, are looking to invest in India’s realty market.

August 12, 2017   No Comments

Marigold Capital Set to Acquire The Leela in Chennai

Mumbai-based private equity fund Marigold Capital and Investments is set to acquire the Leela Group’s 326-room hotel in Chennai, India, for approximately $109 million. The fund specializes in buying debt-ridden hotels and commercial real estate properties and turning them around.

Mumbai-based JM Financial, an investment bank that is the advisor to the sale said, “The deal with Marigold is in the documentation stage where the final agreement will be drafted.”
The Economic Times reports that last year, the JM Asset Reconstruction Company sold the Leela Group’s hotel in Goa to a Malaysian conglomerate MetTube SD BHD for about $113 million.
The Leela Chennai

June 12, 2017   No Comments

“Co-Working” Catches on in India

Co-working, a concept where individuals or startups share a common workplace environment, is slowly catching on across prime property markets in India. Across the country, co-working space of 0.73 million sq ft was tenanted last year.

“Though still nascent, this category could prove to be a disrupter as bigger co-working players such as WeWork enter India and more such facilities pop up across cities,” said Ramesh Nair, CEO of JLL India.

With 9,600 seats available at co-working facilities across the country, Mumbai records the highest absorption nationally, followed by Delhi-NCR, Kolkata, Bangalore, Chennai, Pune and Hyderabad, reports the Economic Times.

Inside an Office

Sumit Lakhani, CMO at Awfis Space Solutions said, “Companies can make savings of up to 20-30% by working in a co-working space.” The firm’s clientele includes small and medium-sized enterprises, start-ups, freelance professionals, consultants, and corporations.

May 30, 2017   No Comments

Warehousing Sector Surges in India

In anticipation of the national Goods and Services Tax roll-out in July, warehousing facilities will increase by 18 percent to 132.5 million sq ft, and this sector is likely to see investments of about $700 million, according to industry experts

Delhi-NCR had the maximum warehousing stock in 2016 at 29.3 million sq ft, followed by the Mumbai Metropolitan Region, Bangalore, Pune, Chennai  Kolkata, Hyderabad, and Ahmedabad.

A warehouse

Ramesh Nair, CEO, JLL India, told BusinessLine that in 2016, the Grade A and B warehousing stock touched 111.9 million sq ft from 96.8 million sq ft in 2015, and that the GST roll out will “up-grade warehousing infrastructure.”

According to Nair, Pune and Chennai lead the way in Grade A and B warehouse rentals due to their proximity to manufacturing hubs, and local market dynamics.

 

May 30, 2017   No Comments

CPPIB to Form JV with India’s IndoSpace Realty

Canada Pension Plan Investment Board (CPPIB) plans to invest up to $1.2 billion in a joint venture with Mumbai-based IndoSpace, an industrial real estate-focused investment firm jointly owned by private equity investor Everstone Capital and Maryland-based Realterm Global.

Key Highlights:

  • Canada Pension Plan Investment Board and IndoSpace form IndoSpace Core, a joint venture that will focus on acquiring modern logistics facilities in India.
  • CPPIB has initially committed approximately $500 million to the joint venture and will own a significant majority stake.
  • IndoSpace Core has committed to acquiring 13 well-located industrial and logistics parks totaling approximately 14 million square feet, from current IndoSpace development funds.
  • The venture also has the option to acquire an existing pipeline worth approximately $700 million as well as participate in a future development pipeline.

A warehouse

Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB, said, “The strong fundamentals underlying the Indian manufacturing and retail sectors and growth in e-commerce, combined with the low stock of high-quality modern industrial real estate in the country, make this a compelling investment opportunity for a long-term investor like CPPIB.

The Canadian fund, which has invested about $3 billion in India since 2010, has been ramping up its India play over the past couple of years. Last month, the Toronto-headquartered fund formed a joint investment platform with Mumbai-based developer The Phoenix Mills Ltd to develop, own and operate retail-led mixed-use developments in India, reports VCCircle.

 

 

 

May 16, 2017   No Comments