Singapore sovereign fund GIC picks 49% in Bangalore residential SPV of Brigade Enterprises

28 June, 2012

Bangalore-based Brigade Enterprise has roped in Singapore’s sovereign wealth fund GIC (through its affiliate Reco Begonia) in a 51:49 private equity partnership to develop a residential project in Whitefield, Bangalore.

Both the realty developer and GIC will invest Rs 105 crore ($18 million) each in the SPV. The project will take another 12-15 months for approval. The said land parcel has been acquired from the FMCG major Hindustan Uniliver Ltd (HUL), which is looking to sell off its realty assets across the country. It has recently sold its erstwhile training centre called Gulita in Worli and also called for a bid to sell off its residential apartments across Mumbai.

The 9.5 acre asset in Bangalore has developable area of over 1 million sq. ft. and the company is targeting to develop high-end residential apartments.

Analysts say that the land acquisition transaction comes to close to Rs 1,200 per sq. ft. or around Rs 120 crore and the selling tag could be around Rs 6,500-8,000 per sq. ft. According to Brigade, this for-sale residential project is expected to generate revenues of Rs 700 crore over the next 3-4 years.

Brigade has a completed development portfolio of 20 million sq. ft. and it plans to develop another 30 million sq. ft. in the next five years.

Brigade’s stock closed at Rs 55.95 per share, up 15.01 per cent on the Bombay Stock Exchange on Thursday.

(Edited by Sanghamitra Mandal)


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Singapore sovereign fund GIC picks 49% in Bangalore residential SPV of Brigade Enterprises

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