MMR: 15 Major Realty Deals in 2014
The Mumbai Metropolitan Region (MMR) realty market was somewhat slow during the year 2014 for multiple reasons. The initial half mainly saw dampened market sentiments and political uncertainty. However, market sentiments improved during the second half with the formation of the new government and the announcement of new policies and initiatives.
Despite this, several deals were inked during the year. The following are some of the major deals inked during this year.
1) Canadian Pension Plan Investment Board (CPPIB), one of the largest long-term public and private equity investors, is about to open an Indian office in Mumbai. It already strung some high-profile deals with realtors such as Shapoorji Pallonji, Piramal and L&T. CPPIB is looking at investments topping $5 billion in India in the next five years.
2) PSA Singapore, a leading port operator signed an agreement with Jawaharlal Nehru Port Trust (JNPT) to develop the fourth container terminal at Navi Mumbai. The investment of this terminal is about Rs 8,000 crore.
3) Mumbai-based Lodha Builders secured about Rs 890 crore in bank finance for its residential project in Mumbai from Canara Bank and Andhra Bank.
4) Xander Group, a global financial services firm, bought Infinity Tech Park, a commercial space owned by Tata Realty and Infrastructure in Mumbai. The price quoted was approximately Rs 650 crore. This signals renewed interest by PE funds to enter commercial real estate in India.
5) An entity co-owned by Pune-based realtor, Panchshil Realty, and a US-based private equity company, Blackstone, bought majority stakes in Express Towers for about Rs 870 crore. The building, situated in Nariman Point, was previously owned by Viveck Goenka of Indian Express Group, ICICI Venture and Indian Express’s former editor-in-chief, Shekhar Gupta.
6) Bangalore-based RMZ Corp has planned to raise about Rs 9,000 crore through a REIT either in Singapore or Mumbai. The company is already in the midst of acquiring almost 6 million sq. ft. of leased office space in NCR, Mumbai and Chennai. The Qatar Investment Authority (QIA) is a major investor in RMZ.
7) The Mumbai International Airport Ltd (MIAL) signed its first deal for commercial development with Oasis Realty, a Mumbai-based firm. The deal is said to be worth Rs 580 crore and the land that will be developed is about 5.5 acre. Situated near the international airport, the land will be developed for mixed-use purpose.
8) HDFC Property Fund is expected to support Runwal Group in buying 24.7 acres of land from Crompton Greaves Ltd in suburban Mumbai. The total transaction is worth about Rs 1,020 crore and HDFC Property Fund will invest Rs 200 crore.
9) Milestone Capital Advisors, a private equity player, launched its 10th fund with an aim of raising Rs 500 crore. The firm plans to invest this amount in mid-segment residential real estate. The PE firm will look at partnering with developers in all major cities including NCR, Mumbai and Bangalore.
10) According to a bilateral agreement signed in September between the mayor of Mumbai and her counterpart of Shanghai, Mumbai will be developed as a sister city to Shanghai to draw more investments in infrastructure.
11) Mumbai-based infrastructure firm – Valecha Infrastructure Ltd will sell its three road projects to New Generation Infrastructure Inc., a US –based infrastructure firm. The projects will be sold for about Rs 309 crore.
12) A consortium led by ICICI Bank entered a debt funding agreement with realty developer Wadhwa Group and its joint venture partner for about Rs 450 crore. This agreement is for a 12-acre residential project in Mulund, Mumbai.
13) Mumbai-based Centrum Capital, a financial services company, teamed up with former property fund Indiareit Ramesh Jogani, and formed a real estate PE joint venture. The company is named India Property Advisors (IPAL) and it will soon launch the Mumbai Residential Opportunity Fund. The size of the offering will be about Rs 250 crore with a green-shoe option of Rs 100 crore.
14) Six former members of Wells Fargo Real Estate Advisors Pvt Ltd have come together and started their venture, Capitedge India Investment Advisory Co Pvt Ltd. The venture is looking to raise Rs 300 crore across two residential funds. Each fund will be roughly Rs 125-150 crore and will be invested in the top five cities.
15) Essel Group has acquired about 2.2 lakh sq. ft. commercial space in Marathon Futurex Complex in Lower Parel for over Rs 400 crore. This is Mumbai’s second–biggest ever office purchase.
With the market sentiment improving and with the expectations of the country’s economy making a comeback in 2015, one may expect more deals to be made in the real estate sector next year.
