<article>Singapore&#8217;s sovereign wealth funds, <a href="http://www.gic.com.sg" target="_blank">GIC</a> is in talks to acquire early 2 million sqft IT special economic zone in Chennai, India, from the Shriram Group for $136 million, a <a href="http://timesofindia.indiatimes.com/business/india-business/Singapores-GIC-to-acquire-Shriram-SEZ-for-Rs-860-crore/articleshow/46939543.cms">report</a> said.</article>

Singapore&#8217;s sovereign wealth funds, <a href="http://www.gic.com.sg" target="_blank">GIC</a> is in talks to acquire early 2 million sqft IT special economic zone in Chennai, India, from the Shriram Group for $136 million, a <a href="http://timesofindia.indiatimes.com/business/india-business/Singapores-GIC-to-acquire-Shriram-SEZ-for-Rs-860-crore/articleshow/46939543.cms">report</a> said.
The deal, if it materialises, will mark its third major commercial office purchase in in India since December 2014. It will also take GIC&#8217;s investments in the commercial office space in India to $320.8 million since December 2014. These commercial asset investments exclude GIC commitments in the Indian residential real estate market. Last year, GIC&#8217;s global peers such as Blackstone and Brookfield Asset Management conduct similar purchases of commercial assets in the Indian market, with a total value of exceeding $2 billion.
The <a href="http://timesofindia.indiatimes.com/business/india-business/Singapores-GIC-to-acquire-Shriram-SEZ-for-Rs-860-crore/articleshow/46939543.cms">Times of India</a>, in a report on April 16, said, the acquisition, mostly of tenanted IT office space, is part of the integrated residential and commercial project <a href="http://www.shriramproperties.com" target="_blank">Shriram Gateway SEZ</a>. The major investors of this project are <a href="http://www.shriramproperties.com" target="_blank">Shriram Properties</a>, part of the <a href="http://www.shriram.com" target="_blank">Shriram Group</a>, and private equity fund <a href="http://www.sunareaprop.com" target="_blank">SUN-Apollo</a>, a franchise of the <a href="http://www.sungroup-global.com/english/platforms/private-equity-franchises.asp" target="_blank">Sun Group</a>. Their respective stakes are 50 percent each, the report added.
The <a href="http://timesofindia.indiatimes.com/business/india-business/Singapores-GIC-to-acquire-Shriram-SEZ-for-Rs-860-crore/articleshow/46939543.cms">report </a>further said that <a href="http://www.hdfcpropertyfund.com" target="_blank">HDFC</a><a href="http://www.hdfcpropertyfund.com" target="_blank"> Property Fund</a> has invested $64.1 million to acquire Sun-Apollo&#8217;s stake, which will be deployed as working capital for developing the residential component of this Shriram Gateway. As part of GIC&#8217;s acquisition of the commercial property, HDFC and Shriram are demerging the residential units from the integrated unit.
<a href="http://www.jmfinancial.in" target="_blank">JM Financial</a> has been engaged interim financier to help the developers repay the $64.1 million loan issued to them by <a href="http://www.hypo-alpe-adria.com" target="_blank">Hypo Bank</a>, an Austrian finance conglomerate. As part of the acquisition, GIC will pay Shriram Properties, Sun-Apollo, and JM Financial once the deal is finalised.
In the case of the deal falling through, GIC may request JM Financial to undertake the <a href="http://www.moneycontrol.com/news/loans/find-out-what-is-lease-rent-discounting_740200.html" target="_blank">lease rental discounting</a> route to recouping its loan, by investing an equivalent amount of capital in developing the park.
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GIC is in talks to acquire early 2 million sqft IT special economic zone in Chennai, India, from the Shriram Group for $136 million

GIC to acquire Shriram SEZ in Chennai for $136m: Report

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GIC to acquire Shriram SEZ in Chennai for $136m: Report

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