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Investors ready $1bn war chest for office assets in India

  • Published at 07:36 pm June 26th, 2014
Investors ready $1bn war chest for office assets in India

Foreign private equity funds and pension funds are among investors that over the last 12 months have committed to invest more than $1bn to buy or build commercial property in India as the government works to finalise rules governing real estate investment trusts (REITs).

In June, Brookfield paid about 33bn rupees ($552.76m) for a 60% stake in six parks from Unitech Corp Parks and a 40% stake in four of the six from Unitech Ltd.

In May, The Xander Group, an emerging markets investor, partnered with a consortium of investors lead by Dutch pension fund asset manager APG Asset Management NV to invest $300m, with an option to increase it to $500m, to buy leased office assets in big cities including Mumbai and Delhi.

In November, Singapore warehouse and industrial park developer Ascendas Pte Ltd announced plans to invest in Indian real estate, focussing on office space, with a target asset size of S$600m ($479.88m). Singapore’s sovereign wealth fund GIC will be a key investor.

In November, Canadian Pension Plan Investment Board said it would invest $200m in an 80% joint venture with Mumbai-based developer, Shapoorji Pallonji Group to buy leased office buildings.