Burman GSC, a joint venture between the Burman Group and private equity firm Golden State Capital (GSC), has bought back office solutions provider Ascendas’ stake in commercial property OneHub in Gurgaon, the Indian company said in a statement.
The project was developed as a 49:51 joint venture between Burman GSC and Ascendas. Burman GSC is now the 100% owner of the SEZ property post the transaction, it said in a statement.
The acquisition was done for an undisclosed amount and Burman GSC has used promoter equity to fund the buyback of the stake in the project. Going forward, the company will put in place a new strategy for rebranding and re-positioning the project. Spread across 62 acres, the project will be renamed as Gurgaon Technology Valley (GTV) and will target technology companies for occupancy.
India and US-focused private equity firm Golden State Capital signed a joint venture pact with realty investment firm Ascendas in 2008 to develop the 62-acre IT SEZ in Gurgaon. Early in 2013 it formed a JV with the Burman family for business opportunities in the realty space through Burman GSC.
“We are very confident about the long-term potential of the site and have committed capital for development of leased assets for income generation. We plan to develop it as the most preferred destination for commercial space occupiers in North India,” said Mohit Burman, chairman, Burman GSC.
He added that the company will put in place an aggressive pricing strategy, which would be in the sub Rs 30 (per sq. ft. per month) range making it one of the most economical space for any large global technology firm.
The commercial real estate market has been on an upswing with leasing and rentals trading in positive domain. According to real estate consultancy firm CBRE, demand for prime office space reached a 10-quarter high of approximately 11 million sq ft for the July – September period this year.
As on September 30, 2016, overall prime office space absorption across the seven leading cities including Gurgaon was about 28 million sq ft for the year.
Gurgaon continues to dominate office space leasing in the NCR, with demand mainly driven by IT/ITeS, and engineering and manufacturing companies.