Bengaluru

Shapoorji Pallonji-Allianz to buy 2.3 mln sqft office park for Rs 1,800 cr in Hyderabad

 

The big Indian business conglomerate Shapoorji Pallonji Group and global insurance major Allianz have come together to acquire WaveRock, a 2.3 mln sqft office park in Hyderabad, from New York-based Tishman Speyer and Singapore’s GIC for a deal worth over Rs 1,800 cr.

 

The SP-Allianz combine has entered into a 90-day exclusive negotiation with WaveRock’s existing owners, beating other contenders Canadian Pension Plan Investment Board(CPPIB) and a real estate unit of InterGlobe Enterprises. 

 

International property consultant JLL is running a sale process for WaveRock, located in the buzzing IT and financial district of Gachibowli, and houses the offices of Apple, Capgemini, TCS and Accenture. The final race was between SP-Allianz and CPPIB. 

 

SP Group and Allianz are expected to route the purchase through their $500-million fund, which was set up last year to invest solely in rent-yielding commercial properties, especially leased grade-A office spaces, in India. 

 

India’s tenanted office spaces have attracted a string of marquee investors such as Blackstone, Brookefield and GIC of Singapore, among others, as they seek stable yields in an economy riding heavily on the services industry. Allianz, through its $63.5-billion asset management arm, wants to build a portfolio of office assets mirroring what its peers have done in the country.

 

With Hyderabad reinventing itself as a major business hub after the slowdown it witnessed due to political unrest prior to the formation of Telangana in 2014, the city’s real estate market dynamics have improved significantly, said Prashant Thakur, head (research) at Anarock property consultants. Hyderabad topped the office-leasing market in the second quarter of 2017, witnessing a 93% rise in net absorption of office space at 1.75 mln sqft, added Thakur.
 

Written by The Realty Paper


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