BackBrigade-GIC to buy Kansai Nerolac’s Chennai plot for Rs550 crore
JLL says its the largest ever land transaction in Chennai
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Bengaluru: Brigade Properties Pvt. Ltd, a joint venture between Brigade Enterprises Ltd and sovereign wealth fund Government of Singapore Investment Corp. Pte Ltd (GIC), is set to buy a 15.8 acre plot in Chennai’s Perungudi area for ₹ 550 crore from Kansai Nerolac Paints Ltd, the companies said on Monday.
Brigade Properties has entered into a “term sheet" with Kansai Nerolac, they said.
Brigade and GIC entered into a joint venture last year, which invests in and acquires land for residential and mixed-use developments—including shopping malls and offices—in cities in southern India.
JLL India and CBRE India are joint advisors to the transaction.
“The Chennai land is ideal for a mixed-use development, similar to Brigade Gateway in Bengaluru. The price has been agreed upon and due diligence is on," said a person familiar with the development, requesting anonymity.
Brigade Gateway is a large development that has a mix of residences, the Orion mall and multiplex, school, hospital, hotel and the World Trade Center, Bengaluru.
A number of sovereign wealth funds and pension funds in the past couple of years have partnered with real estate developers in India to jointly identify and invest in projects in the country.
Apart from the Chennai acquisition, the joint venture has invested in Brigade Cosmopolis, an under-construction residential project in Bengaluru’s Whitefield area and jointly bought a piece of land in Whitefield from Hindustan Unilever Ltd for ₹ 125 crore.
“This will be the largest ever land transaction in Chennai. Even though the housing market is dull and sales are show, this is an indicator that there is private equity capital available for good quality assets," said Ramesh Nair, chief operating officer (business) and international director, JLL India.
In 2013, VGN Developers Pvt. Ltd bought a 1.5-acre piece of land on Nungambakkam High Road in Chennai for ₹ 195 crore from Tata Communications Ltd, after which the real estate firm bought a 10-acre plot of land in the city’s Guindy area for ₹ 305 crore.
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