NEW DELHI: Singapore's sovereign wealth fund GIC has invested Rs 150 crore in a joint venture with real estate firm Vatika group to develop two projects in Gurgaon. Managing director of Vatika group Gautam Bhalla confirmed the investment and said the company was in talks with GIC for other investments as well.
The two projects are close to Vatika Express City and Vatika India Next — the two townships that the group is building on the Dwarka-Manesar Expressway.
"GIC is confident of India's growth potential over the long term," Loh Wai Keong, cohead Asia at GIC Real Estate, said in a statement posted on the fund's website. "Vatika Group is one of the leading developers in Gurgaon and we are pleased to establish this partnership. We have nurtured long-term partnerships with developers across the globe successfully and hope that we will leverage each other's strengths to grow this partnership steadily in the coming years."
The projects, with development potential at over 2.3 million sq ft, would be developed by Vatika and will have close to 1,000 apartments. "They are expected to be completed by 2018-19 and are expected to generate revenues in excess of Rs 2,000 crore," GIC said.
Home sales have been tepid over the last few quarters across most markets in the country. Home sales across the top six cities of the country saw a quarter-on-quarter drop of 25% in the quarter to September, the lowest since 2009, while unsold inventory rose to a high of 815,000 apartments, according to property research firm Liases Foras.
However, home sales are expected to look up soon with the Narendra Modi government initiating reform measures in the sector, like relaxing the foreign direct investment limit in construction and real estate.
The commercial office space leasing market has already begun to see an improvement with corporate occupiers resuming their expansion plans.