MUMBAI: Realty developer Shapoorji Pallonji Real Estate has entered into an agreement with global property investment management firm Hines to jointly develop two phases of its premium residential project Parkwest in Bangalore.The total investment by the joint venture partners for the development of these new phases will be around Rs 425 crore. According to the agreement, Hines will be paying about Rs 318 crore to Relationship Properties, a wholly-owned subsidiary of Shapoorji Pallonji Group, for a majority stake in phase 3 and phase 4 of the project.The residential project is spread across around 46 acres in Binnypet area of Bangalore and has a total saleable area of around 4.8 million sq ft. Of this, phase 3 of the project, which has already been launched, has around 0.32 million sq ft saleable space, while the fourth phase, to be launched by this year end, has 1.48 million sq ft area. The first phase of the project is already sold out, while the second phase is being undertaken by Shapoorji Pallonji Real Estate independently.“This strategic partnership is in line with our theme of joint ventures with India's best development companies. This project also marks our entry into Bangalore after an extensive search, and further to our existing presence in NCR and Mumbai," Amit Diwan, managing director and country head, Hines India Real Estate, told ET.Hines has previously partnered with developers such as DLF, Tata Housing and Conscient Group to develop real estate in the NCR and Mumbai property market.“This partnership fits well with our strategy to partner with global investors to expand our product offering in the premium residential segment. As part of the partnership, there will be new product addition to our premium residential project which will strengthen our presence in the Bangalore residential market,” Venkatesh Gopalkrishnan, CEO, Shapoorji Pallonji Real Estate, told ET.Shapoorji Pallonji Real Estate has, in 2016, partnered with Actis, International Finance Corporation (IFC) and Asian Development Bank (ADB) to develop middle income housing across India under its Joyville brand that currently has four projects across the country.Global investors, including CPPIB, Blackstone Group, Singapore's sovereign fund GIC, Goldman Sachs and Qatar Investment Authority have been investing in Indian realty assets for the past few years. In addition to this, more funds are eyeing investment and alliance opportunities here.Crucial policy decisions, which have resulted in change in global investors’ perception of Indian real estate, include implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), the Benami Transactions (Prohibition) Amendment Act, 2016, infrastructure status to affordable housing projects, demonetisation, interest subvention schemes, relaxation of norms to encourage Real Estate Investment Trust (REIT) listings and implementation of the Goods and Services Tax.In terms of cities, Mumbai, Delhi NCR and Bangalore have been the preferred markets accounting for over two-third of institutional investments from 2009 till 2018, showed a recent report. With 42% share of investments worth $8.6 billion in 2014-18, Mumbai is ahead of other cities; it is followed by Delhi-NCR and Bangalore with $4.4 billion and $2.6 billion, respectively.
from Economic Times http://bit.ly/2ZNR3ND
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