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GIC to jointly acquire commercial assets in India for $1.89 billion

SINGAPORE - Singapore sovereign wealth fund GIC has tied up with Brookfield India Real Estate Investment Trust (Reit) to acquire two prime commercial real estate assets in India for a combined enterprise value of around US$1.4 billion (S$1.89 billion).

The assets, to be acquired from Brookfield Asset Management’s private real estate funds, have a total area of 6.5 million square feet.

They include commercial properties in Downtown Powai, a mixed-use development in Mumbai, and Candor TechSpace in Sector 48 of Gurugram, a satellite city of Delhi.

GIC said that the equal partnership is the first of its kind in India involving a listed real estate investment trust and a global institutional investor, in a joint statement on Friday.

Goh Chin Kiong, GIC deputy chief investment officer of real estate, said its partner “is a leading market player with a strong track record in India.”

He said that the joint venture with a public Reit in India will allow GIC to scale up its investments there. “We look forward to adding value to the assets, which are well-located within key gateway cities,” he added.

Mr Kishore Gotety, GIC co-head of real estate, Asia ex-China, said that the fund expects growth in the India office sector to continue, driven by an established information technology industry, increased focus by global corporations on digital adoption and the availability of skilled talent.  

“These acquisitions are testament to our confidence in the India office sector, as well as the wider Indian market, and will add to the diversification of GIC’s global office portfolio,” he added.

The acquisitions will also increase the gross asset value of Brookfield India Reit to US$3.5 billion and its net asset value to US$2 billion. Its property portfolio will expand by 35 per cent in total leasable space and 44 per cent in operating area.

The Reit is the country’s only institutionally managed Reit, holding five large campus format office parks located in the key gateway markets of India, Mumbai, Gurugram, Noida and Kolkata.

Downtown Powai is a portfolio of nine commercial properties spread across three clusters totaling 2.7 million square feet of operating area and 0.1 million sq ft of area under expansion. It is located within Hiranandani Gardens, Powai, a 101 hectare integrated township with high quality residential developments and social infrastructure.

Candor TechSpace in Gurugram is one of the largest campus office developments in the city and comprises 12 completed buildings.