Singapore’s sovereign wealth fund GIC is investing about 61 million (Rs 430 crore) in Indian real estate developer Prestige Estates Projects Ltd through a preferential allotment of shares, the latter said in a regulatory filing.
“…the Board has approved to create, offer, issue and allot on preferential basis, 13,441,654 equity shares of face value Rs.10 at a price not less than floor price of Rs.323.22, determined in accordance with Chapter V of the SHBI ICDR Regulations to Gamnat Pte Ltd,”Prestige Estates in its filing, dated December 20, 2019, said.
Gamnat is an investment firm managed by GIC.
Bengaluru-headquartered Prestige Group reportedly has more than 36 million sq ft of under-construction and upcoming office properties. It also has six malls in the pipeline in addition to 10 operational retail assets.
According to a report in The Economic Times in October, Prestige Estates is considering REIT for its income generating assets as its looks to monetise assets.
The development comes close on the heels of GIC recently divesting its stake in special economic zone (SEZ) property Waverock in Hyderabad to SPREF II Pte. Ltd., a joint venture between Allianz Group and Shapoorji Pallonji Group.
GIC had acquired 50% stake in Tishman Speyer’s WaveRock in 2015.
Last year, Gamnat had also invested Rs 1,000 crore in the real estate arm of the Godrej Group to fund its growth plans. In 2017, GIC had also acquired a 33.34% stake in developer DLF’s rental arm DLF Cyber City Developers (DCCDL) for $1.39 billion.
Private equity investments in Indian real estate during the first three quarters of 2019 rose to Rs 39,182 crore, up 19 per cent in the same period a year ago, according to data from Cushman & Wakefield India.