GIC | Business Upturn

Blackstone and GIC in negotiations to sell $1.5-2 billion share in joint venture real estate projects

Avinash Ram — Tue, 08 Aug 2023 15:08:15 +0000

According to three sources, Blackstone is in talks to sell its 50% ownership in some of the commercial assets it owns with the Salarpuria Sattva group in Hyderabad and the Panchshil Group in Pune to Singapore’s sovereign wealth fund GIC. The projects have a $4 billion enterprise value and 26 million square feet of rentable space. Depending on the talks, the sale might be in the range of $1.5-2 billion, sources stated. One of the insiders stated that the agreement is still in the planning stages and that much will depend on the assessments and the final pricing. About 5 msf of the overall space is being built.

The agreement comprises Panchshil’s Eon Free Zone, Tech Park One, and ICC Tech Park, which also has Pavilion Mall and a 415-key JW Marriott hotel. The partnership was established in 2014. Knowledge City, Knowledge Capital, and Knowledge Park are the projects in Hyderabad that fall under the block that Blackstone has with the Salarpuria company, and the JV has been in place since 2017. Along with the two real estate groups, Blackstone is building and owning additional projects that are not covered by the agreement with GIC. It was also made obvious by sources that it was selling its stake in a few of the projects rather than leaving the joint ventures. Indications also pointed to the possibility of other parties being interested in the projects, even if GIC was the front-runner. GIC did not react to a question submitted through a contact form on their website, while Blackstone declined to comment.

To create Asia’s largest real estate investment trust and list it, Blackstone originally intended to combine all commercial properties under its JVs with its own office portfolio held under Nucleus Office Parks. These intentions have since evolved as the US-based alternative asset management behemoth prioritizes the monetization of certain of its Indian real estate holdings. A source claimed that Blackstone’s plans for the REIT of its office property were still in place, although with a smaller portfolio.

Distributable earnings are a crucial indicator for Blackstone, and selling a real estate asset is the quickest method to monetize it. It must strike a balance between the maturity of its holdings in terms of the profits it may make from a sell-off and its long-term ability to collect rent and monetize the value through a REIT IPO. There has been a difference in office absorption due to the downturn in the US and Europe, two main sources of Grade A office occupants in India. The office absorption in India declined 5% year over year to 25.8 msf in the first half of 2023 and 6% in the June quarter, according to workplace solutions company Vestian. Most of the fall was caused by Bengaluru, Mumbai, and Kolkata.

Aditya Birla Fashion and Retail to raise Rs 2,195 crore from GIC

United News of India (UNI) — Tue, 24 May 2022 06:47:50 +0000

New Delhi, May 24: The board of Aditya Birla Fashion and Retail Ltd (ABFRL) on Tuesday approved raising of up to Rs 2,195 crore. by way of preferential issuance of equity and warrants to an affiliate of GIC, Singapore’s sovereign wealth fund. In a regulatory filing, ABFRL said that the board has approved fund raising by issuance of equity shares. And warrants on a preferential allotment basis to Caladium Investment Pte Ltd by entering into a share subscription agreement (SSA) dated May 24, 2022. “The preferential issue is subject to regulatory approval(s) and other closing conditions under the SSA”. ABFRL said in the filing.

It said that the board also approved an increase in authorized share capital. From existing Rs 1,010.15 crore to Rs 2,010.15 crore. The company in a statement said that GIC will invest Rs 770 crore now towards subscription of equity and warrants. Followed by up to Rs 1,425 crore in one or more tranches within 18 months upon exercise of warrants. “Post the entire investment, GIC will own 7.5 per cent equity stake in ABFRL. Aditya Birla Group will hold 51.9 per cent stake in the company post the completion of this transaction. “ABFRL plans to use the capital to accelerate its growth.

“Welcoming GIC as a long-term partner in the company’s growth. Kumar Mangalam Birla, Chairman Aditya Birla Group said that. An investment of this nature serves to underscore ABFRL’s strong position and dynamic growth model. “Choo Yong Cheen, Chief Investment Officer of Private Equity for GIC said. “We are delighted to partner with Aditya Birla Fashion and Retail. To bring our long-term capital and resources to support its next phase of growth. “ABFRL has a strong track record of building brands and its new business lines. Including innerwear and ethnic wear, have strong structural tailwinds. We are confident that the company is well-positioned. To continue its transformational journey into a future-ready consumer company. Powered by the growth of India”. Added Cheen.

Kotak Special Situations Fund invests half of its $1 billion initial corpus in eight company’s IES

Diya S. — Mon, 28 Jun 2021 07:07:30 +0000

Kotak Special Situations Fund (KSSF), a part of Kotak Investment Advisors Ltd. (KIAL) has invested $502 million of its $1 billion initial corpus in eight companies.

As a per a top official of the company, it will search for a similar amount to raise from investors in late 2021 or early next year. KSSF was launched by KIAL, a wholly owned subsidiary of Kotak Mahindra Bank Ltd. (Group) in February 2019 as an Alternative Investment Fund (AIF) with a $1 billion corpus.

It had received $500 million from UAE’s sovereign wealth fund Abu Dhabi Investment Authority, $250 million from Singapore’s GIC and the remaining between Premji Invest and Kotak Group.

The Chief Executive Officer (CEO) of KSSF Eshwar Karra told PTI, “We have so far deployed $502 million of our $1 billion fund in eight companies. The first investment of ₹500 crore was made in January 2020 in Jindal Stainless (JSL).” He added that the company hopes to pick up more assets by investing ₹1000 crore by the month of September.

By September, it aims at completing deals worth 65 per cent ($650 million) of its corpus. Generally, funds like KSSF shore up capital as soon as they utilize up 75 per cent of the existing capital. In the matter of resolving stressed asset issues, they are sector-and-instrument-agnostic. When it comes to the stressed asset category, the fund has invested $195 million in three companies so far.

According to the CEO, they have an exit time of two to three years along with a lock-in period of two years for any investment.

DCCDL acquires 51.8% stake in Fairleaf Real Estate Pvt Ltd

Arnav Dogra — Fri, 19 Feb 2021 07:26:03 +0000

DLF Cyber City Developers Limited (DCCDL), operated by real estate giant DLF Group, released a statement saying that it has now acquired 51.8% stake in Fairleaf Real Estate Pvt Ltd which cost them Rs 780 crore.

In a statement, the company said, “We would now like to inform that DCCDL has completed the acquisition of this 51.8% stake at a consideration of ₹779.40 crore and consequently Fairleaf has become a wholly-owned subsidiary of DCCDL with effect from today i.e. 18th February 2021.”

DCCDL had formed a Securities Purchase Agreement through funds operated by Hines which would enable them to complete their acquisition of Fairleaf Real Estate Private Limited.

Hines had previously been the major stakeholder in this project at 52% ownership and it owned and operated the One Horizon Centre in Gurugram, which included the management of the prime leasable area of 8.13 lakh square feet, offering high-end grade-A office spaces along with complimentary retail space.

In 2017, promoters of DLF had sold their entire 40% stake in DCCDL for nearly Rs 12,000 crore. 33.34% of the stake had been purchased by GIC for nearly Rs 9,000 crore. DLF currently owns DCCDL along with GIC. DLF is the majority stakeholder at 66.66%.

Reliance Retail raises $1 billion from GIC, TPG

Chittesh Dalmia — Sat, 03 Oct 2020 05:38:58 +0000

Reliance Industries Ltd announced that Singapore sovereign wealth fund, GIC and global equity firm, TPG Capital has invested a total Rs 7,350 crore ($1 billion) in its retail business.

Mumbai based Reliance Retail Ventures Ltd. (RRVL) has raised $2 billion in investments from global investors, including Silver Lake, KKR & Co, and Mubadala.

GIC is slated to invest Rs 5,512 crores for a 1.22% stake, while TPG Capital Management will invest Rs 1,838 crore for 0.41% equity stake in the retail arm, the company said.

The investments in Reliance Retail values the company at a pre-money equity value of 4.285 trillion rupees ($58.47 billion), Mukesh Ambani led company stated.

Mukesh Ambani, chairman and managing director of Reliance Industries said, “I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape.”