Published On: Thu, Jun 1st, 2017

Hiranandani Seeks Rs. 3000 Cr PE partnership

Mumbai-based property developer Hiranandani  mulling to build a Rs 3,000 crore equity partnership for its three million sq ft project in Thane. The company seeks to form a joint venture for its commercial properties in a township called Hiranandani Estate. For this, it is in talks with private equity investor Xander and Brookfield.

Last year, Hiranandani signed deal with Canadian investor Brookfield for a $1-billion commercial property in Mumbai, another mega one is in the works.

Hiranandani Estate has about three million sq ft of office properties and 200,000 sq ft of retail properties and is jointly owned by brothers Niranjan and Surendra Hiranandani.

Last year, Tata Consultancy Services leased two million sq ft office space in Hiranandanis’ commercial project in Thane for an annual lease rental of Rs 100-120 crore, in the biggest office space deal in the country in recent years.

Last year, Brookfield bought 4.5 million sq ft of commercial properties in the Powai suburb of Mumbai from Hiranandani group, a joint venture between Hiranandani brothers.

Niranjan has plans to develop industrial townships in Pune and Chennai and leisure housing in Alibaug and Khandala near Mumbai. Currently, his company Hiranandani Communities is developing office properties of five million sq ft.

Surendra under House of Hiranandani is developing real estate projects in the country.  Xander group was recently in news after it acquired Special Economic Zone of Shriram Group in Chennai for Rs 2,290 crore, or $350 million. Shriram Properties and private-equity fund SUN-Apollo put Shriram – The Gateway, a 4.6 million sq ft development, on sale.

In recent past, big office asset deals have picked up in recent past. Promoters of DLF, the country’s biggest developer, sold 40 percent in its rental arm DLF Cyber City Developers to Singapore’s GIC for Rs 13,000 crore.  US-based Blackstone bought 15 percent in K Raheja Corp’s rental arm for Rs 1,500 crore.

Also deals in retail properties have shot up in recent years. Last year, Blackstone bought a 50 percent stake in a Pune mall for Rs 600 crore. Before that, it bought a mall in Navi Mumbai from L&T Realty for Rs 1,400 crore. Blackstone has set up a company called Nexus Malls to manage the malls.

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