The private equity (PE) wing of Indiabulls Asset Management Company has acquired an entire commercial building with fully leased 2.35 lakh sqft of office space on NH-8 in Gurugram from the US-based realty developer Hines India.
The project, Sky View Corporate Park, is a multi-phase development planned on a 21-acre land parcel in the National Capital Region (NCR).
The first phase of the project consists of development of two commercial buildings with each having 2.35 lakh sqft of office space. Indiabulls AMC has acquired 100% equity in the Special Purpose Vehicle (SPV) owning the commercial building.
Indiabulls has tied up with its co-investor InterGlobe Real Estate Ventures (IGR), the real estate wing of Inter-Globe Enterprises, for this particular investment. The grade ‘A’ campus-style project has already been leased to a leading information technology (IT) services firm.
Indiabulls Asset Management has acquired the commercial building through its fund Indiabulls Dual Advantage Commercial Assets Fund. This is one of the first transactions involving a domestic fund picking up pre-leased commercial asset in India.
“This is our first investment in the commercial office space and we are extremely keen and focused on this space and plan to conclude more such deals over the next six months. The investment is perfectly aligned with the fund’s strategy of acquiring strategic office assets in top seven cities, built by Grade ‘A’ developers and leased to large companies at competitive rates,” said Ambar Maheshwari, CEO Indiabulls Private Equity.
Sky View Corporate Park is a joint development being undertaken by Hines India along with a land owner and the second ready tower here is owned by the landlord as part of the agreement. Of the total development potential of 2.5 mln sqft, Hines has completed 0.5 mln sqft across two office towers. Indiabulls declined to comment on the transaction value. According to property consultants, the deal could be valued around Rs 200 cr based on current rentals and outright rates in the area.
This is Indiabulls AMCs’ first such investment wherein it is acquiring a completed and fully-leased commercial asset. The fund is looking to strengthen its relationship with IGR so that they can together make more such investments in this space.
Indiabulls AMC is looking to deploy more than Rs 1,000 cr in commercial office space over the next 12 months. Launched in 2017, Indiabulls Dual Advantage Commercial Assets Fund is a category-II AIF managed by Indiabulls Asset Management Company, a 100% subsidiary of Indiabulls Housing Finance.
Indiabulls currently manages four AIFs and portfolio management schemes (PMS) in the real estate space across residential and commercial assets.