Virtuous Retail, backed by Dutch pension fund manager APG Asset Management, has acquired an ownership stake in North Delhi Metro Mall that will develop a premium retail facility in the national capital. Precisely, the project will be located in Civil Lines, which is near the Delhi University North Campus.
In a first round of funding, Virtuous has invested about Rs 350 cr, with the total investment expected to go up to Rs 800 cr. Yes Securities, the investment banking arm of Yes Bank, is believed to have helped the company in the first round of funding.
Virtuous Retail is a joint venture between Singapore-based Xander Group and the Dutch institutional investor. Its India chapter is based in Bengaluru.
The privately-held North Delhi Metro Mall (NDMMPL) was incorporated back in 2003. Classified as a non-government company, it has a paid up capital of about Rs 67 cr. Some of its directors include Rakshit Jain, Siddharth Gupta, Arun Mitter, and Sunil Sharma – all industry veterans.
Virtuous Retail’s pan-India portfolio includes prime city center locations in Bengaluru, Chennai, Surat and Chandigarh.
Earlier in November, APG Asset Management NV invested $175 million (about Rs 1,150 cr) of fresh equity into Virtuous Retail South Asia Pvt Ltd (VRSA) for acquisitions and greenfield project developments.
ICRA rated NDMMPL as A4 for its short-term credit last year.
Large global investors have been showing significant interest to own India’s retail real estate in the past few years. India’s office property segment retained its dominance in attracting private equity investments in the quarter ended March, recording inflows of $1.7 billion in 10 transactions. Commercial assets accounted for more than 70% of total investments made by private equity players into Indian real estate, ET reported Monday.
Last year, the Canada Pension Plan Investment Board (CPPIB) said it would invest $250 million in Island Star Mall Developers Pvt. Ltd, a unit of Phoenix Mills Ltd. Island Star owns the Phoenix Market City mall in Bengaluru.
The funds will be used for acquiring and developing both greenfield assets on newly purchased land banks and existing operating retail assets.