BY Swet Sarika
Dutch pension fund APG and Canada’s
CPPIB had also struck similar platform deals in the Indian realty space.
Bangalore-based Brigade Group has
entered into a Memorandum of Understanding (MoU) with Singapore's sovereign
wealth fund GIC to jointly invest up to Rs 1,500 crore ($247 million) in
residential developments in select cities of South India, the company said in a
stock market disclosure.
The JV aims to acquire land for
residential and mixed use developments in cities reporting strong secular
demand for high quality residential units.
MR Jaishankar, chairman and managing
director, Brigade Group, said, "Our first joint venture project - Brigade
Cosmopolis is a well conceived, residential community with several amenities
coming up at Whitefield, Bangalore that will be home to over 880 families. This
JV will provide us a platform to acquire and execute a series of similar
projects in South India."
Lee Kok Sun, managing director and
co-head, Asia, GIC Real Estate, said, "As a long term investor, GIC is a
believer in India's growth potential. We seek partners who share our philosophy
and values and have a reputable track record in the markets in which they
operate."
A number of real estate and
infrastructure developers have formed alliances with global investors for
investment and development of real estate in India. In February this year,
Piramal Enterprises Ltd and Canada-based CPPIB Credit Investments Inc joined
hands to offer rupee debt financing to residential projects in major urban
centres of India. The two partners committed an initial investment of $250
million each for the same.
Recently, it sealed its debut deal
from the joint venture where it invested Rs 110 crore in a luxury residential
project of Advance India Projects Ltd in Gurgaon.
In March this year, The Xander Group
Inc. and an investor consortium led by Dutch pension fund asset manager APG
Asset Management NV, announced the creation of a $300 million (Rs 1,800 crore)
venture that will buy income generating, institutional grade commercial assets
across India’s main office markets.
Two years ago, Godrej Properties
forged a residential property development platform with a string of foreign
institutional investors led by Dutch pension services provider APG. The
platform focuses on developing mid-income residential properties in Mumbai,
Delhi-NCR and Bangalore besides looking at opportunities in Pune and Chennai.
Godrej Properties is the exclusive developer of the projects and also gets
development management fee.
(Edited by Joby Puthuparampil
Johnson)
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