Chennai: In one of the biggest commercial deals in South India, Indiabulls Distribution Services Ltd, a subsidiary of Indiabulls Securities Ltd, has bought a 10 acre commercial complex in Chennai for Rs 600 crore ($97 million).
The India Land Tech Park in Ambattur will be renamed One Indiabulls Park. Indiabulls is looking to fund the transaction through internal accruals and private equity funds.
The commercial complex consists of 3 towers with a total constructed area of 2.4 million sq ft and leasable area of 2 million sq ft, translating into a transaction value of Rs 3,000 per sq ft of leasable area.
India Land and Properties is owned by Americorp Group, a global investment management company headquartered in Madrid, Spain. An ISO 9001 2000 certified company, India Land says it is working with the primary objective of promoting world-class infrastructure projects in India.
Current tenants of the complex include Royal Bank of Scotland, Kone, Britannia Industries, Ajuba, Covenant, Telebuy and Ibox.
]The Indiabulls-India Land deal is the second highest realty deal in Chennai. The highest ever commercial deal in the city to date, is by private equity firm Xander in Shriram Property's IT SEZ for Rs 690 crore. In October, Flipkart signed one of the biggest commercial real estate deal in India when it took 3 millions sq ft space in Embassy Tech Village in Bangalore.
In fact it seems that South India has pipped the north and west when it comes to commercial real estate. From January to September, almost 50 percent of new office space deals were struck in Chennai, Hyderabad and Bangalore, said international property consultant CBRE.
Chennai recorded a 50 percent quarterly growth in the July-September period, with some of the bigger transactions involving properties like the Prestige Palladium in the heart of the city, the DLF IT SEZ, approximately 5 km from the airport; and along the city's upcoming it corridor in Sholin-Ganallur where a contract research firm scope international signed up 96,000 sqft .
Moreover, rentals have risen by 25 percent Y-o-Y and 15 percent-plus Q-o-Q in IT SEZs in localities like Velachary, Perungudi and Poonamallee Road.