Bengaluru: Indiabulls Dual Advantage Commercial Assets Fund has bought an office complex called Phoenix Trivium in suburban Hyderabad, marking the second transaction from the fund.
Indiabulls did not disclose the deal amount but a person familiar with the transaction, who did not want to be named, said the transaction was valued at around Rs470 crore.
The commercial office asset in Hafeezpet is being developed by Hyderabad-based Phoenix Group and has 1 million sq. ft of developable area. The first phase is constructed and leased, which will be followed by two more phases.
Indiabulls Dual Advantage Commercial Assets Fund, an alternative investment fund, was launched by Indiabulls Asset Management Co. Ltd in 2017 to raise around Rs1,500 crore, including Rs500 crore from co-investors. The fund will invest in buying out office assets that generate a regular stable rental income, with capital appreciation on exits.
In February, the fund bought a commercial office tower in Gurugram from realty firm Hines India Ltd for Rs200 crore, marking the first deal from the new office fund. Indiabulls partnered with co-investor InterGlobe Real Estate Ventures Pvt. Ltd (IGR), the real estate arm of InterGlobe Enterprises Pvt. Ltd, for the buyout.
“We firmly believe investing in commercial properties possess a strong and sustainable growth perspective. This investment in Phoenix Trivium reflects our confidence in Hyderabad’s continued growth and reaffirms our business strategy and commitment to avail such market opportunities in the long run," said Ambar Maheshwari, chief executive (private equity), Indiabulls AMC.
Even as India’s residential real estate business continues to reel under a prolonged slowdown, investors have been buying office assets aggressively.
In January, Indiabulls Real Estate Ltd (IBREL), the property development arm of the Indiabulls Group, said it would buy a completed office building in Gurugram through its unit Yashita Buildcon. In May, IBREL sold a 50% stake in its two office assets in Mumbai to PE investor Blackstone Group LP for Rs4,750 crore. Post that, it also sold its One Indiabulls Park, an office asset in Chennai, to the New York-based investor for Rs900 crore.
In a 16 February report The Comeback of Hyderabad—India’s Original IT Hub Rises Again, property advisory CBRE said the realty market outlook for Hyderabad looks positive, backed by a stable political environment, growing occupier demand, improving infrastructure and the availability of a large skill pool.