Varde Partners funds $155 million for two office developments in Hyderabad – ET RealEstate

Global alternative investment Varde Partners has provided senior construction financing on two pre-leased office assets of the Phoenix Group in the Gachibowli financial district of Hyderabad, India.

The $155 million or Rs 1,137 crore facility will be used to refinance and fund to completion over 2.5 million sq ft across the two grade A developments owned by the developer, Varde Partners said in a release.

ET broke the story regarding this transaction on March 22.

Out of the total development, over 1.5 million sq ft has been pre-leased to two multinational companies, reflecting the quality and location of the assets. Construction of both projects is well-advanced, with sub-structure development complete and super-structure phases underway.

Varde believes that India’s real estate market is experiencing a significant imbalance in the supply and demand of capital, leading to many businesses with robust balance sheets seeking alternative sources of capital.

“We see significant opportunity across the Indian office market for both the financing and purchase of assets, in a market that offers potential strong cash-flow visibility, multinational tenants and strong absorption,” said Tim Mooney, Partner and Global Head of Real Estate at Varde Partners. “India is a dramatic example, but emblematic of what we’re seeing across the Asia Pacific region, and across the globe. We believe that a real estate cycle is upon us and while not nearly as pronounced as the cycle brought on by the global financial crisis, the opportunity set is significant and growing.”

Varde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, Varde Partners has invested $75 billion since inception and manages more than $14 billion across corporate and traded credit, real estate and mortgages, private equity and direct lending.

Indian real estate sector is expected to continue to witness increased interest from global institutional investors and higher allocation of long-term capital from them given the limited growth opportunities in other developing markets.



Source link

GIC to buy 1.1 million sq ft Phoenix Group’s IT SEZ in Hyderabad for Rs 1,050 crore – ET RealEstate

Singapore sovereign wealth fund GIC has entered into an agreement to buy an Information Technology-Special Economic Zone (IT-SEZ) spread over 1.1 million sq ft in Hyderabad’s Gachibowli locality from the Phoenix Group for Rs 1,050 crore, persons with direct knowledge of the development said.

The entire development, Phoenix Aquilla, has two towers spread over 1.8 million sq ft and the first tower with 7 lakh sq ft has already been completed and leased. Both the towers situated next to Amazon’s operational campus are separate and independent parks.

The second block with 1.1 million sq ft space is currently under construction and is expected to be completed in the next 15 months.

Last year, in one of the single largest leasing transactions in the country, this entire IT park was pre-leased to American IT major Micron Technologies.

The deal with GIC is a forward purchase agreement as the project will be handed over by the Phoenix Group after completing the entire construction and execution.

GIC has paid part of the consideration amount upfront and balance will be transferred after the project’s handover to them.

ET’s separate email queries to GIC and the Phoenix Group remained unanswered until the time of going to press. Transaction advisor CBRE South Asia declined comment for the story.

Earlier this month, global alternative investment advisor Varde Partners invested over Rs 1,150 crore in the Phoenix Group’s two under-construction IT parks.

Prior to inducting GIC and Varde Partners, the developer entered into alliances with global entities such as CapitaLand, Xander, Lake Shore for its other projects.

In February, Ascendas India Trust entered into an agreement with the Phoenix Group to acquire an IT SEZ project for Rs 506 crore. This project, an IT SEZ, aVance 6 at HITEC City in Hyderabad, is spread over 6.3 lakh sq ft and around 98.3% of the space here is leased to Amazon Development Center.

In 2019 Abu Dhabi Investment Authority (ADIA)-backed Lake Shore India Advisory bought a majority stake in a retail mall project in Hyderabad from Phoenix Group for Rs 1,000 crore, inclusive of construction funding.

In 2018, Xander Investment Management, the private equity real estate arm of global investment firm, The Xander Group, signed a Rs 2,550 crore primary investment with the Hyderabad-based developer for development and acquisition of 4.5 million sq ft office space in the city.

Notwithstanding the Covid19-induced economic shock, global institutional investors’ appetite for Indian real estate has continued to grow as against the earlier expectation of a decline in their interest due to a bruised economy and challenges like the Work-from-Home model.

Indian real estate sector is expected to continue to witness increased interest and higher allocation of long-term capital from them given the limited growth opportunities in other developing markets.

A likely repair of the bruised economy, improving trade relations, policy support and progress on the vaccination front are the key factors expected to drive the sentiment henceforth.

Institutional investment in the Indian real estate staged a smart recovery during the quarter ended December with $3.5 billion investments. As a result, the year 2020 closed with $5 billion investments, equivalent to 93% of 2019 transactions, despite a sudden halt brought on by the pandemic.



Source link

Varde Partners invests Rs 1,150 crore in Phoenix Group’s two office projects – ET RealEstate

Global alternative investment advisor Varde Partners has invested over Rs 1,150 crore in Hyderabad-based Phoenix Group’s two under-construction information technology special economic zone (IT-SEZ) projects in Gachibowli locality of the southern city, said persons with direct knowledge of the development.

Both the projects, with a total 3 million sq ft development, are located in Gachibowli financial district and are situated within a half a kilometre radius. The projects—Phoenix Aquilla and Phoenix Centaurus—are 50% completed and 12-18 months away from completion.

Phoenix Centaurus is a tower spread over 2 million sq ft across 17 large office floors adjacent to Microsoft’s operational campus in the city, while Phoenix Aquilla will have a total 1 million sq ft development next to Amazon’s operational campus.

“The global investment flowing into these under development SEZ projects indicates the resilience and strong confidence shown by international investors in Indian office market,” said one of the persons mentioned above.

Prior to inducting Varde Partners, the Phoenix Group has entered into partnership with global entities such as CapitaLand, Xander and Lake Shore for its other projects.

The total development of 3 million sq ft in both these IT parks is pre-committed to tenants like ZF Technologies and Micron Technologies.

ET’s email query to Phoenix Group remained unanswered until the time of going to press. Varde Partners and transaction advisor CBRE South Asia declined to comment.

In February, Ascendas India Trust entered into an agreement with the Phoenix Group to acquire an IT SEZ project for Rs 506 crore. This project, aVance 6 at HITEC City in Hyderabad, is spread over 630,000 sq ft and around 98.3% of the space here is leased to Amazon Development Center.

Abu Dhabi Investment Authority (ADIA)-backed Lake Shore India Advisory had in 2019 bought a majority stake in a retail mall project in Hyderabad from Phoenix Group for around Rs 1,000 crore, inclusive of construction funding.

In 2018, Xander Investment Management, the private equity real estate arm of global investment firm The Xander Group, had signed a Rs 2,550 crore primary investment with the Hyderabad-based developer for development and acquisition of 4.5 million sq ft office space in the city.

Indian real estate sector is expected to continue to witness increased interest from global institutional investors and higher allocation of long-term capital from them given the limited growth opportunities in other developing markets.

Two major deals in 2020—the Blackstone Group taking over of 21 million sq ft of completed and under-construction office, retail and hospitality assets from Prestige Estates for around $1.2 billion and the Brookfield Group picking up RMZ Corp’s 12.5 million sq ft office and co-working assets for $2 billion—indicate the continued interest in India and office properties that account for a major share of the portfolio deals.

Institutional investment in the Indian real estate staged a smart recovery during the quarter ended December with $3.5 billion investments. As a result, the year 2020 closed with $5 billion investments, equivalent to 93% of 2019 transactions, despite a sudden halt brought on by the pandemic.



Source link

Ascendas India Trust to acquire IT-SEZ building in Hyderabad for Rs 506 crore – ET RealEstate

NEW DELHI: Ascendas India Trust on Tuesday said it will acquire an IT-SEZ building in Hyderabad from Phoenix group for Rs 506 crore. Ascendas Property Fund Trustee, in its capacity as Trustee-Manager of Ascendas India Trust, has entered into definitive agreements for the proposed acquisition of aVance 6 at HITEC City, Hyderabad.

“The agreements were executed with the shareholders of Phoenix IT Infrastructure India to acquire an IT-SEZ building with a total floor area of approximately 6,39,495 square feet for a gross consideration of approximately Rs 5.06 billion (SGD 92.03 million),” a company statement said.

About 98.3 per cent of aVance 6 is leased to a multi-national corporation, Amazon Development Center (India) Private Limited.

The proposed acquisition will be the fifth building acquired by Ascendas India Trust (a-iTrust) from the Phoenix Group.

In February 2012, a-iTrust acquired aVance 1 & 2, totaling 4,27,700 square feet.

In July 2015, a-iTrust acquired aVance 3, totaling 6,82,900 square feet; and in April 2017, a-iTrust acquired aVance 4, totaling 3,90,000 square feet.

aVance 5 is currently under construction.

Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, “The proposed acquisition provides a-iTrust an opportunity to scale up our presence in HITEC City and will add Amazon as a tenant to our IT park portfolio.”

Ascendas India Trust (a-iTrust) was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in August 2007 as the first Indian property trust in Asia.

Its principal objective is to own income-producing real estate used primarily as business space in India.

a-iTrust may also develop and acquire land or uncompleted developments primarily to be used as business space, with the objective of holding the properties upon completion.

As at December 31, 2020, a-iTrust’s asset under management stood at SGD 2.1 billion. a-iTrust’s portfolio comprises seven IT business parks and one logistics park in India.



Source link