Singapore’s Xander Investment Management on Thursday said it has acquired Weikfield IT Citi Info Park, an office park in Pune, for $130 million ( ₹900 crore) as global investors deepen their presence in India’s expanding commercial office sector.
Xander has bought the 1.1 million sq. ft office park from private equity firm New Vernon Capital, Llc, which counts Maersk, WNS, Whirlpool, Nihilent Ltd and Tavisca Solutions Pvt. Ltd among its tenants.
Xander Investment is the private equity real estate arm of The Xander Group Inc., a global investment firm.
The transaction reaffirms a surge in interest among global institutional investors in acquiring office assets across India to capitalize on a steady performance by the commercial office sector.
“Through this acquisition, we add a quality Pune asset with substantial growth potential to our ongoing India Office Value-Add strategy,” said Arpit Singh, principal, Xander Investment Management.
“The asset nicely complements our existing, 100% owned and operated portfolio across key Indian cities, and enables us to offer a strategic Pune location to tenants.”
A spokesperson for New Vernon Capital could not be reached immediately.
Property advisory JLL India was the transaction advisor.
Last October, in its first significant commercial office deal in Hyderabad, Xander said it has invested $350 million for the development and subsequent acquisition of 4.5 million sq. ft of office space in developer Phoenix Group’s project.
Xander also purchased an office building last year at Embassy Golf Links Business Park in Bengaluru for ₹350 crore from the Sanjay Ghodawat Group.
The office space sector has outperformed the tepid show by the residential sector in the last few years.
Office supply jumped 31% year-on-year to 23.9 million sq. ft during the period, the highest in this decade.
The country’s first real estate investment trust or REIT was launched by Embassy Office Parks—a partnership between Embassy and Blackstone—housing 33 million sq. ft of office and hospitality assets. The REIT issue was launched in March and raised ₹4,750 crore.
This article was first published on livemint.com.