Some of the most prominent global funds like the GIC of Singapore, Temasek-owned Mapletree and Blackstone Group are competing with each other to acquire one of the oldest technology office zones located in Bengaluru — IBC Knowledge Park — for over Rs 2,300 cr.
India Builders Corp, or IBC, a legacy office space developer in southern India, is selling a 2.2 mln sqft office asset, which counts Accenture, IBM, Byju’s and Swiggy as tenants. Global investors, chasing stable yields in office real estate, have limited assets of scale in Asia’s third-largest economy, driven by a strong services sector.
India’s technology capital Bengaluru is the largest grade-A office market by annual absorption and currently has record low vacancies. Xander Group and Singapore’s Ascendas are the other investors evaluating a bid, which is expected by mid September. The park reported a net operating income of Rs 170 cr from the fully leased 1.7 mln sqft, while another 0.5 mln sqft development potential is offered as part of the deal.
GIC is likely to join hands with K Raheja Corp and Blackstone may look at the asset along with Embassy Group. International property consultant JLL is running the sale process.
IBC Knowledge Park, located on 13 acres near Dairy Circle, is one of the few large office parks to go on sale in Bengaluru, which is expected to report around 13-14-mln sqft leading activity this year. The overall India office leasing activity is likely to cross 40 mln sqft, closing the gap with China’s 50 mln sqft.
The office park — set up in 2004 — was initially a joint venture between IBC and Century Group. After a prolonged shareholder dispute, IBC bought Century’s stake in Knowledge Park some two years ago.