Ascendas-Singbridge, GIC fund buy Pune land from Kohinoor Group for Rs200 crore
Bengaluru: Singapore-based firms—office developer Ascendas-Singbridge Group and sovereign wealth fund GIC Pte. Ltd—have bought a 16-acre land parcel in Pune’s Kharadi suburb for around Rs200 crore from Kohinoor Group.
This acquisition is the second investment under the Ascendas India Growth Programme (AIGP), in which GIC is a principal investor along with Ascendas-Singbridge.
Ascendas-Singbridge has two existing India-focused private funds—Ascendas India Development Trust and Ascendas India Growth Programme—totalling around 800 million Singapore dollars. Launched in 2013, AIGP has a target asset size of 600 million Singapore dollars and made its first investment in the 60-acre International Tech Park, Gurgaon.
The 16-acre site in Kharadi has a total development potential of 2.2 million sq.ft and will be developed into an information technology (IT) and IT special economic zone park. The first phase will offer around 1 million sq.ft of office space, and is scheduled to be completed by early 2020.
This latest acquisition under AIGP is in line with plans by Ascendas-Singbridge and GIC to grow their portfolio and deepen their presence in India, the company said in a release on Wednesday.
“Pune has seen a consistently strong demand for business space which is evident from the high occupancy levels at our IT parks in the city managed by Ascendas-Singbridge. With this new site in Kharadi, we will be able to offer our occupiers more options within the city,” said Sanjay Dutt, CEO, Operations and Private Funds, Ascendas-Singbridge India.
This is the second land deal in Pune, after city-based developer Kolte-Patil Developers Ltd last week said it has sold a land parcel in suburban Wakad to Island Star Mall Developers Pvt. Ltd, an investment platform of Phoenix Mills Ltd and Canada Pension Plan Investment Board (CPPIB), for Rs160 crore. Kolte-Patil termed the sale as a “strategic divestment”.
Several mid-sized real estate developers have been monetizing their own land bank by selling them to larger developers and institutional investors, in a bid to streamline their businesses, reduce debt and focus on their ongoing projects.
Going forward, Ascendas-Singbridge Group plans to raise around $300 million capital from third-party investors, to invest in office park projects in India, and aims to ramp up its own information technology (IT) office development portfolio, Mint reported on 23 June.
Ascendas-Singbridge will raise the capital from mainly offshore institutional investors as well as commit a certain amount of its own, and manage the fund’s investments. The new fund will look at greenfield and brownfield projects that are in the land stage or have all approvals in place.
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