Salarpuria Sattva signs Rs 275-cr JV with Apollo Asia

BENGALURU: Salarpuria Sattva Group and Apollo Asia RE Singapore Pte Ltd ("Apollo Asia Fund") have entered into a joint venture to acquire 100 per cent stake from a group of offshore investors in two real estate projects here and at Vadodara. The deal value is Rs 275 crore ($42 million), Salarpuria said in a statement. It said Apollo Asia Fund's investment was made under the foreign direct investment guidelines.

MUMBAI|BENGALURU: In the largest private equity buyout so far in India’s real estate sector, Xander Group has agreed to acquire 100 per cent interest in Shriram’s Gateway SEZ in Chennai for $190 million, or about Rs.1,220 crore, with further commitment of $160 million to expand commercial component of the integrated township. “It is a long pending transaction. Shriram Properties had also signed term sheet with Ascendas earlier for the same asset,” said a person close to the development.

MUMBAI/BANGALORE: In the largest single deal in the retail real estate sector in India, Dutch pension fund asset manager APG Asset Management ("APG") and Virtuous Retail ("VR"), sponsored by leading emerging markets investment firm The Xander Group Inc. ("Xander"), have partnered to form a joint venture that has acquired an initial portfolio of 3 retail assets from a Xander sponsored fund in a transaction valued at Rs 2,000 crores (US$ 300 mn) APG has invested 77% of the equity for a majority shareholding in the joint venture. Xander has invested the balance 23%.

The IT capital of India has only 3 per cent vacancy in office space, an all-time low, against the top seven cities in the country as strong demand from corporates sucks up space but builders are moving to pre-fabricated buildings and customised offices to stay in business. According to JLL, the average vacancy in commercial real estate stands at 15 per cent, as of the second quarter of 2016.

BENGALURU: Prestige Estates Projects has acquired Red Fort India Real Estate Holdco's 62.54% stake in Bengaluru's Exora Business Park valued at around Rs 1,400 crore. The transaction would be one of the biggest in the commercial real estate sector in the recent past. Irfan Razack- CMD Prestige Group confirmed the deal. As part of the acquisition the company has also got 2.13 mn sft of fully leased office space that generates rental of Rs 135 crore annually," said Razack. Additionally Rs 250 crore worth residential stock was also part of the buyout. ET Reported the transaction on June 5.

BANGALORE: Realty major Prestige Estates Projects is set to unveil a little over Rs 1,000-crore deal to acquire a 63.5% stake in Exora Business Park from Red Fort Capital, people directly involved with the matter said. The deal values Exora at Rs 1,600 crore, with 8.5% capitalization rate, a percentage that determines the return on investment on rental assets. Prestige, which owns the remaining minority shares, is taking its stake to 100% through a combination of short-term loans and internal accruals.

MUMBAI: Private equity major Blackstone Group, the biggest owner of office space in the country, has entered into a definitive agreement with Milestone Capital and Hindustan Construction Company to acquire 247 Park, a large commercial property in the eastern suburbs of Vikhroli. Blackstone will acquire 100% in the 1.1-million sq. ft., fully leased out property for about Rs 1,050 crore, said two people familiar with the development. Currently, 74% is owned by Milestone Capital and the rest by cash-strapped construction and engineering company HCC.

MUMBAI/BENGALURU: Real estate private equity investor Milestone Capital Advisors has made an exit from a commercial property in Bengaluru's Electronic City phase I at Rs 150 crore, fetching more than 16% gross internal rate of return. The asset, which achieved rental yields of over 12% for the past five years, has been sold to an ultra high-net-worth individual. IL&FS Milestone Fund II had invested Rs 129 crore in the property E-City Park II in two tranches between 2010 and 2012. The entire eight-storey building with total 3.50 lakh sq ft space was owned by the fund.