Demand for commercial property surges- Infinity Technology Park is sold for Rs 650 Crore
The demand to buy or take on lease commercial establishments was running low in the beginning of the calendar year. However looks like that the good days for the commercial real estate sector are not far away. The inside story makes it clear that Global financial services firm Xander Group Inc. is buying Infinity Technology Park, a 7.8 lakh square feet commercial space owned by Tata Realty and Infrastructure in Mumbai suburbs, for roughly. Rs 650 crore.
It shows that private equity funds are now again taking interest to build commercial real estate assets in India as it offers annuity returns for a longer tenure but with minimal risks. Apart from Xander, other major funds including Blackstone and GIC had also shown interest in the property. About 96 % of the commercial property has been leased to MNCs such as Accenture, BNP Paribas, Tata AIG and Mphasis (EDS) at an average rental of Rs 85 per square feet a month.
The commercial space was earlier owned by Kotak Realty Fund, which manages $1 billion of assets. They had sold it to the Tata group company for Rs 525 crore in 2011. In August 2006, Kotak Realty, through its Kotak India Real Estate Fund I, had bought this Goregoan property, which was then under construction, from K Raheja Constructions for Rs 230 crore.
After the sale Tata has to return to its investors or limited partners who had invested in Tata Realty Initiatives Fund I which was formed to buy this property.
Source- The Economic Times
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