Taking advantage of the push for investment into India and economic partnership with Singapore, the city-state’s sovereign wealth fund GIC has acquired a 49 per cent stake in realty firm Provenance Land for an estimated SGD200 million (INR1,000 crore), according to sources.
GIC has been investing heavily in the Indian real estate market in the past few years. It had in December last year bought 33.34 per stake in DLF's rental arm DLF Cyber City Developers Ltd (DCCDL) for about SGD1.8 billion (INR9,000 crore).
Provenance owns 4.5 acres at Worli in central Mumbai where the company already has a five-star Four Seasons Hotel which has 202 rooms. It plans to develop Four Seasons Private Residences and a office tower with 7 lakh sq ft area.
"GIC is acquiring a significant minority stake in Provenance Land, the developer that first introduced the Four Seasons brand into India," the two companies said in a joint statement.
Market sources said that GIC has bought 49 per cent stake for an estimated SGD200 million.
"This investment marks a key milestone for Provenance Land, as it directly bears out the intent to expand quickly and strategically into new best-in-class developments and deliver on our vision," Provenance Land MD Adarsh Jatia said. "GIC's investment brings us their international expertise in these asset classes. Their core strengths of a disciplined approach to investing long-term capital and sound governance structures will no doubt help us create additional value for all stakeholders," he added.
Chief Investment Officer of GIC Real Estate Lee Kok Sun said: "As a long-term global investor, we continue to have a positive outlook in India's growth potential in the long run. This investment is a unique opportunity to acquire a stake in a high-end mixed-use development situated in a prime location in Mumbai."
The proposed office development is an attractive proposition, given continued demand for quality office space and expected long-term rental growth in Mumbai, he added.
"We believe this well-located, high-quality project will generate resilient returns in the long run and look forward to partnering with Provenance Land on this joint venture," said Lee Kok Sun.