It is acquiring a 2.5 million square foot site in India, equally owned by New York-based property developer Tishman Speyer and Singapore sovereign wealth fund GIC.
SPREF II, a joint venture between Allianz Group and Shapoorji Pallonji has acquired the WaveRock business park, located in Hyderabad's IT special economic zone, in a $250 million deal, Allianz announced in a statement on Wednesday.
WaveRock is fully occupied, with tenants like DBS, Apple, Tata Consultancy Services, Accenture, GGK Technologies, Aveva Solutions, CapGemini, and DuPont India, the release said.
This is GIC's first exit from any of its Indian properties, and the Singapore-domiciled joint venture's second acquisition after its 2018 purchase of the 1.8 million square foot SP Infocity in Pune, India, India's «Economic Times» noted.
India Office Market Positive
Global institutional investors have been pouring into Indian commercial real estate assets in recent years, particularly the commercial segment. Buoyed by ongoing policy overhaul, rising investor confidence, enhanced transparency, and sustained growth in demand for grade-A commercial office space, this momentum is expected to continue, «Economic Times» said.
Rajesh Agarwal, CEO of Shapoorji Pallonji Investment Advisors, said the acquisition of WaveRock «represents the confidence of global institutional investors in the Indian commercial real estate growth story.»
SPREF II has equity commitments of $500 million from its investors. Its SP Infocity investment is «outperforming its business plan,» Rushabh Desai, Allianz Real Estate CEO, Asia Pacific, said. He added that office investments in India continue to offer attractive risk-adjusted returns.
