Brigade Group of Bangalore and Singapore Sovereign Wealth Fund GIC Agree to Purchase a 5.5-acre Property in Chennai From TVS

According to credible sources, Brigade Group and Singapore sovereign wealth fund GIC have agreed to buy 5.5 acres of prime property along Chennai's iconic Anna Salai, also known as Mount Road, from TVS Group for more than Rs 550 crore.

The site is now occupied by Sundaram Honda, a sales and dealership firm that has called Mount Road home for numerous years.

Brigade is completing its second deal with GIC. Around six years ago, the two bought a 15.86-acre property piece in Chennai from KansaiNerolac Paints in a transaction for Rs 550 crore. 

According to reports, GIC of Singapore, which entered India's real estate sector around 16 years ago, is now interested in investing in a variety of Indian real estate asset classes, including warehouse, retail, and commercial.

The Singapore based wealth fund has formed a strategic relationship with The Phoenix Mills to establish a joint venture for the development, ownership, and operation of retail-led, mixed-use complexes in India. GIC would initially spend an aggregate value of Rs 5,500 crore to purchase an approximately 26.4 percent interest in Phoenix Mills' chosen portfolio. 

Additionally, the firm reached an agreement with ESR Cayman to invest USD 750 million, or about Rs 5,625 crore, in industrial and logistical assets in India. GIC will own an 80 percent ownership in the joint venture, which will be seeded with a 2.2 million square foot build-to-core site in close proximity to Mumbai and Thane.

Brigade Group expects to launch 1.84 million square feet of commercial space and 2.38 million square feet of residential space in the next quarters. The firm owns about 20 million square feet of projects in different phases of development and land banks with the capacity to create an additional 30 million square feet.

Institutional investors, including sovereign wealth funds, private equity companies, and domestic businesses, are likely to continue investing in Indian real estate in 2022, with more money expected to flow into the industry.

During 2021, Indian real estate received institutional investments of around USD 4.3 billion, or approximately Rs 32,250 crore, from institutions such as private equity companies, family offices, pension funds, and sovereign funds.