Tata Realty & Infrastructure Ltd. has acquired entire Equity Share by Actis in Intellion Square, Goregaon, Mumbai in an all cash deal.
Tata Realty & Infrastructure Ltd. (“TRIL”) has acquired entire Equity Share held by Actis TREIT Holdings No. 2 (Singapore) Private Limited (“Actis TREIT 2”) and 416 Listed NCDs held by Actis TREIT Holdings No. 1 (Singapore) Private Limited in TRIL IT4 Private Limited now called Intellion Square, Goregaon, Mumbai(“TRIL IT4”) in an all cash deal (the “Transaction”). A Securities Purchase Agreement was executed between all the parties. TRIL IT4 is part of a joint venture between Tata Realty and Actis that invests in and develops new generation offices in established commercial markets across India’s major cities.
Post the transaction, TRIL now owns 100% stake in TRIL IT4 Private Limited, which owns and operates an I.T. building, located in the established micro market of Malad, Mumbai. TRIL IT4 is a ~0.8 million sq. ft. completed I.T. building leased to marquee tenants, largely from the technology & BFSI sectors.
Sanjay Dutt, MD & CEO, TRIL said “We remain steadfast in our commitment to strengthen our commercial portfolio. This transaction is a testament to our confidence in the Indian commercial real estate sector. This deal is in line with our endeavour and expansion strategy for our commercial portfolio.”
About the partnership, Mr. Dutt further added “TRIL & Actis have a long standing platform level partnership with investments across multiple assets and it has been a mutually enriching experience. With this successful exit, TRIL has demonstrated its capability to create shareholder value for pre-eminent investor partners.”
The transaction is the second office exit by Actis during the Covid-19 pandemic, following in the footsteps of another successful exit Actis completed last year during the peak of the pandemic in Seoul, Korea. Both the exits have delivered strong returns and enforce Actis’ strategy of working with high quality partners, in bringing new generation office assets at competitive prices to its markets.
During a period of five years, Actis actively supplemented Tata Realty’s efforts in carrying out a programme of substantial asset upgrade works and efficiency-based pricing to enhance the asset’s appeal ahead of major lease renewals and to increase its net income. Despite the impact of the Covid-19 pandemic, IT4 remains a highly attractive Grade A office space that has seen not only new tenants making long term commitments to the property, but also existing tenants extending their leases, with a healthy and stable occupancy at around 90%.
Adding his views on the successful exit with excellent return on investment, Ashish Singh, Partner in the Asia Real Estate team at Actis said “Actis’ joint venture with Tata Realty has delivered its first successful exit at a time of significant short term disruption but where strong long term fundamentals in the Indian office market still exist. With the right partner quality and strategy in the mix, supported by our active asset management approach, we look forward to further successes in our joint venture.”