Singapore's sovereign wealth fund GIC has inked a joint venture agreement with Gurgaon-based developer Vatika Goup to develop two residential projects in Delhi-NCR, the company said in a statement.
“Vatika Group and GIC through its affiliate have entered into a joint venture to develop two residential projects on Dwarka Expressway, Gurgaon," GIC said in a statement.
The JV will develop two residential projects across 2.3 million sq ft. The projects are expected to fetch revenues to the tune of Rs 2,000 crore, according to the company.
"GIC is confident of India's growth potential over the long-term. Vatika Group is one of the leading developers in Gurgaon and we are pleased to establish this partnership," said Loh Wai Keong, co-head Asia, GIC Real Estate.
Gautam Bhalla, managing director, Vatika Group, said "The group is happy to partner with GIC, a leading global investment organisation with a strong vision and values that are in line with Vatika's. We see this as a good start to a rewarding long-term partnership."
This is not the first time GIC has directly collaborated with an Indian developer partner, instead of going through a fund route. Recently, it formed an alliance with Bangalore-based Brigade Group to jointly invest up to Rs 1,500 crore ($247 million) in residential developments in select cities of South India.
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.
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.
The real estate arm of Vatika Group is engaged in developing corporate complexes, residential complexes, resorts, five star hotels, restaurants, business centres and fitness outfits. Established in 1991, the firm also offers hospitality development and facilities management interests.
(Edited by Joby Puthuparampil Johnson)