Bengaluru-based developer Salarpuria Sattva Group and US-based private equity giant Apollo Global have formed a joint venture to acquire two real estate projects from a group of offshore investors for Rs 275 crore ($42 million), the Indian company said in a statement.
The JV has taken over two undeveloped land parcels–10 acres near Malleswaram in Bengaluru and 18 acres in Vadodra–which will be developed into residential projects, the statement said.
Apollo has formed the JV through Apollo Asia RE Singapore Pte. Ltd, a vehicle through which it makes investments in Asian countries such as India and China.
Bijay Agarwal, managing director at Salarpuria Sattva Group, said the company would like to form more joint ventures with Apollo Asia Fund for real estate projects in the future.
The deals come a little more than a year after Apollo set up an Asia-focused real estate private equity platform and hired Nipun Sahni, former executive of Bank of America Merrill Lynch, as its India head. Apollo had also hired Philip Mintz, founder of Venator Real Estate Capital Partners, to head its Asia real estate business. As part of the agreement, it had absorbed $500 million assets under management of Venator, a China-dedicated fund.
Earlier this year, Apollo had struck a Rs 400-crore deal with Noida-based Logix Group to back its projects through structured debt. This was the second collaboration between Apollo and Logix. The duo had earlier developed an office park, called Logix Cyber Park, in Noida together before Apollo exited in September 2015. Apollo had got exposure to the office park in 2010 after it acquired Citi Property Investors, in which it had invested in 2006.
For Salarpuria, which claims to have completed 18 million sq ft of spaces and has 17 million sq ft under construction, this marks the second big-ticket transaction in six months. In March, the world's largest alternative investments asset manager Blackstone Group invested in Salarpuria's Knowledge City office park in Hyderabad.
Salarpuria has presence in Hyderabad, Kolkata, Pune, Jaipur, Goa and Coimbatore, besides its home market of Bengaluru, and has been looking to expand its presence to more markets.
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