Brigade Group forms $247M JV with Singapore’s GIC for residential realty projects

Bangalore-based Brigade Group has entered into a Memorandum of Understanding (MoU) with Singapore's sovereign wealth fund GIC to jointly invest up to Rs 1,500 crore ($247 million) in residential developments in select cities of South India, the company said in a stock market disclosure.

The JV aims to acquire land for residential and mixed use developments in cities reporting strong secular demand for high quality residential units.

MR Jaishankar, chairman and managing director, Brigade Group, said, "Our first joint venture project - Brigade Cosmopolis is a well conceived, residential community with several amenities coming up at Whitefield, Bangalore that will be home to over 880 families. This JV will provide us a platform to acquire and execute a series of similar projects in South India."

Lee Kok Sun, managing director and co-head, Asia, GIC Real Estate, said, "As a long term investor, GIC is a believer in India's growth potential. We seek partners who share our philosophy and values and have a reputable track record in the markets in which they operate."

A number of real estate and infrastructure developers have formed alliances with global investors for investment and development of real estate in India. In February this year, Piramal Enterprises Ltd and Canada-based CPPIB Credit Investments Inc joined hands to offer rupee debt financing to residential projects in major urban centres of India. The two partners committed an initial investment of $250 million each for the same.

Recently, it sealed its debut deal from the joint venture where it invested Rs 110 crore in a luxury residential project of Advance India Projects Ltd in Gurgaon.

In March this year, The Xander Group Inc. and an investor consortium led by Dutch pension fund asset manager APG Asset Management NV, announced the creation of a $300 million (Rs 1,800 crore) venture that will buy income generating, institutional grade commercial assets across India’s main office markets.

Two years ago, Godrej Properties forged a residential property development platform with a string of foreign institutional investors led by Dutch pension services provider APG. The platform focuses on developing mid-income residential properties in Mumbai, Delhi-NCR and Bangalore besides looking at opportunities in Pune and Chennai. Godrej Properties is the exclusive developer of the projects and also gets development management fee.

(Edited by Joby Puthuparampil Johnson)

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