The multi-phase deal at Phoenix Trivium values the property owned by Hyderabad realtor Phoenix Group at Rs 450 crore, said two persons close to the transaction.
“Of the total development in the IT corridor of the city, the developer has already completed the first phase of the project, and this phase has already been fully leased to a leading software company,” said one of the persons cited above.
Ambar Maheshwari, CEO – Private Equity Funds, Indiabulls AMC confirmed the transaction without giving details of the deal.
“We firmly believe that investing in commercial properties possesses a strong and sustainable growth perspective. An IT hub and one of the country’s top seven cities, Hyderabad is witnessing a strong momentum in office space, majorly driven by demand from high-quality tenants,” Maheshwari told ET, explaining the investment rationale.
The investment is being made through Indiabulls Dual Advantage Commercial Assets Fund, which is a category II Alternate Investment Fund managed by Indiabulls Asset Management Company.
Indiabulls AMC is looking to create a Rs 1,500-crore portfolio of commercial assets through this fund over the next few quarters.
“We will continue to invest in under-rented Grade A office properties that are leased to high-quality tenants across top seven cities,” Maheshwari added.
Indiabulls AMC is the investment arm of the group and currently manages Mutual Funds, Alternate Investment funds and PMS. It is one of the largest domestic real estate AIF fund managers and currently manages more than Rs 1,800 crore of residential real estate.
Indiabulls launched its first office fund last year and has already committed Rs 600 crore across grade A, preleased office projects. Phoenix Trivium is the second investment after the fund acquired a commercial complex by Hines in Gurgaon.
Institutional investors including private equity, sovereign wealth and pension funds have been increasingly showing interest in picking up income-producing commercial real estate assets. Given the ongoing transformation in business environment led by structural reforms, Indian real estate is witnessing a robust rise in investment inflow as both foreign and domestic institutional investors are pumping in more funds into the sector.
Large global institutional investors, including Blackstone Group, Brookfield Asset Management, GIC, Canada Pension Plan Investment Board (CPPIB), Goldman Sachs and Qatar Investment Authority have been investing aggressively in Indian real estate assets over the past few years.
In addition to this, more funds are eyeing investment and alliance opportunities in the backdrop of recent policy reforms. While these entities had earlier shown interest in investing in commercial real estate, they are increasing their investment portfolios in the backdrop of the opening up of an avenue for monetization through Real Estate Investment Trusts (REITs).