Pension, sovereign funds eye Mumbai’s commercial complex
To acquire 1.12-million-sq-ft commercial property 247 Park in Mumbai
Dec 19, 2014
Source : The Economic Times


MUMBAI: Global pension and sovereign funds including Canada Pension Plan Investment Board (CPPIB), APG, Abu Dhabi Investment Authority are in talks with private equity firm Milestone Capital to acquire 1.12-million-sq-ft commercial property 247 Park in Mumbai, two persons familiar with the development said.

The deal, expected to be valued over Rs 1,000 crore, indicates the rising appetite for incomeproducing office properties.

Milestone Capital owns majority 74% stake in the property located on LBS Marg in Mumbai's Vikhroli suburb, while the rest 26% is with Hindustan Construction Company (HCC). Dutch pension major APG is negotiating along with its India alliance partner Xander Group, while Shapoorji Pallonji Group is driving the discussions for CPPIB.

Blackstone Group is in advanced talks with the property's joint owners to acquire it for over Rs 1,000 crore. Its negotiations for the property had started more than a year and half ago. However, the transaction has not reached conclusion due to differences between joint owners on the structure of the proposed deal, which in fact, led to talks that the deal has been called off. 247 Park is a nearly 100% leased property counting Siemens, Piramal Group, Future Group, KEC, HCC, DHL, APL and Tata Group as its key tenants. Being a fully leased out commercial complex, 247 Park fetches annual rental income of around Rs 100 crore with most of its built-up area comprising IT-ITeS and commercial offices along with a large format retail store.

ET's email queries to APG and Abu Dhabi Investment Authority remained unanswered till the time of going to press, while Xander Group and Shapoorji Pallonji Group, in their separate responses, said they do not comment on market speculation. CPPIB also said it does not comment on speculation on deals.

Sovereign wealth fund owned by the emirate of Abu Dhabi, according to persons mentioned above, is looking to acquire the asset independently. Last year, ADIA had committed $200 million to Kotak Realty Fund to invest in Indian real estate. Kotak Realty has denied holding any talks for the asset 247 Park on behalf of ADIA. Milestone in an email told ET, "We are unable to comment anything at this moment.We will update you on our plans at an opportune moment."

Latest Realty News

Builders can’t charge extra for economy houses: DC
Dec 19, 2014
GURGAON: The distrct administration has decided to take strict action against developers who have launched affordable housing schemes, if they charge premium amount from the buyers to allot flats
Transfer process of HUDA sectors to MCG begins
Dec 19, 2014
GURGAON: After several delays, the state government has finally taken a step to transfer urbanized Haryana Urban Development Authority (HUDA) sectors and private colonies to the Municipal Corporation of Gurgaon (MCG)
HC suspends ban on new layouts in VGTMUDA limits
Dec 19, 2014
HYDERABAD: In a setback to the AP government, the high court suspended a government order issued by its municipal administration department that banned the approval of fresh layout plans for construction of buildings in the capital region
Register properties in illegal colonies’
Dec 19, 2014
NEW DELHI: In a bid to woo the unauthorized colony vote bank, Delhi BJP president Satish Upadhyay has asked the Delhi government to lift the ban on registry of properties in such colonies
MMRDA plan for taller buildings in BKC, Wadala shot down
Dec 19, 2014
MUMBAI: An MMRDA plan to earn additional revenue by offering greater vertical construction potential on its lands has not met with success as the civil aviation ministry has refused to relax height restrictions in BKC and Wadala
Maharashtra orders regularization of homes on ‘private forest land’
Dec 19, 2014
MUMBAI: The state revenue and forest department has directed the deputy conservator of forests and deputy collectors to implement the Supreme Court order to regularize houses on plots that had been labelled private forest land
Bombay HC clears redevelopment of Andheri housing society
Dec 19, 2014
MUMBAI: Nearly 500 families languishing in alternative accommodation for eight years due to disputes over their society's redevelopment will finally see a ray of hope
CREDAI Kochi Property Show From December 19 to 21
Dec 19, 2014
KOCHI: CREDAI Kochi Property Show will be held at the International Stadium, Kaloor, from December 19 to 21
First-ever Real Estate Award to be held in Odisha
Dec 19, 2014
Bhubaneswar: Odisha is going to have a maiden Real Estate Award-2015 scheduled to be held on 17th of January next year
Odisha scraps allotments of land, houses under discretionary quota
Dec 19, 2014
Bhubaneswar: Odisha government announced scrapping of all such allotments made under the quota since January 1, 1995

Latest Realty News Of State

Realty Talk's