Mapletree India China, a wholly-owned subsidiary of Temasek Holdings of Singapore, has acquired 100% stake in a Bangalore technology park for Rs.800 crore. This is the largest private equity deal in the city’s real estate sector in three years.
The international fund, which invests in real estate firms, has completely bought out the promoters of Assetz Global Technology Park (AGTP), at least three people with direct knowledge of the deal told ET. The project is a joint venture between development and marketing firm Assetz Property Group and Delhi-based investor Mithilesh Tripathy.
According to the sources, the promoters did not have funds to execute the project. The deal was closed at 4,000 per sq ft, which, though big, is lower than expectations.
Multiple banking sources familiar with the development said the company was in talks with funds such as Mapletree and GIC to liquidate the plot since last year and Mapletree emerged as the front-runner to buy the asset.
Global Tech Park, on Bangalore’s Outer Ring Road, is an integrated mixed-use development, which has a developable area of 15 acres or 2.5 million sq ft. As of October 2011, five lakh sq ft of developable area within the business park was operational, leased to LSI Logic, an infotech firm.
Even as many builders in other big cities of India are finding it difficult to raise funds for their projects, Bangalore has been attracting large PE deals. The largest real estate private equity deal closed in 2011 when Blackstone picked up 37% stake in Manyata Tech Park, the country’s largest operational tech SEZ for over Mapletree India China for Rs.1,000 crore ($200 million). The property is a JV with south-based Embassy Property Development and landowner, Veeranna Reddy.
During the July-September quarter this year, PE deals worth $324 million were reported in the real estate, housing and construction sectors, an increase of 30% in aggregate PE deal value when compared with the April-June quarter and a decrease of 34% when compared to the same period last year, says a report by Ernst & Young.
Bangalore continued to see healthy transaction activity in the same quarter, especially in the large office formats. The city recorded a total absorption of 7 million sq ft till Q3 of CY2011, an increase of 20% over last year, with corporates looking for consolidation and expansion plans, mentioned a report by CB Richard Ellis, a market research firm.
