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Shriram Properties and Xander Group have signed a $350 million (Rs 2,290 crore) deal, creating one of the largest PE deals witnessed in the real estate space in India.
With this deal, Xander acquires 100 per cent interest in Shriram’s Gateway SEZ in Chennai for $190 million (Rs 1,250 crore), with a further commitment of $160 million (Rs 1,040 crore) towards expansion of the IT SEZ.
The deal involves 1.7 million square feet of occupied and operational SEZ, and a partnership with Shriram Properties to deliver the under construction 1.9 million square feet.
Shriram Gateway, is a 58-acre integrated township project including office space, a shopping mall and residential apartments. Shriram will continue to develop and own the residential and retail components comprising 2.6 million square feet while Xander will have the ability to develop an additional 1 million square feet of office space.
“This acquisition demonstrates our continued interest in large, well-positioned assets with growth potential across gateway cities in India, and nicely complements our existing office portfolio," said Rohan Sikri, Senior Partner, The Xander Group.
He added, “We are pleased to be working with Shriram Properties to expand our existing Chennai footprint. We see the opportunity to deliver additional high-quality supply in a market where vacancy is rapidly falling. As always, our team will be focused on tenant experience and satisfaction, which is a high priority across the portfolio.”
Shriram Gateway is the first integrated township in Chennai comprising a large office campus with 4.6 million square feet of SEZ and IT office space. The campus currently provide employment for over 20,000 employees which will grow to an estimated 50,000 employees by 2020. Accenture is currently the largest tenant.
“The project offers a plethora of opportunities and is a source of employment generation across various sectors in Tamil Nadu. The mixed use, commercial cum residential project is a benchmark in the industry, and we plan to develop many such projects across cities in India. We are also delighted to join our hands with The Xander Group and enhance our position as a leader in India’s real estate space.” said M Murali, Managing Director, Shriram Properties.
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