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Xander Investment Management Pvt Ltd, the real estate private equity arm of global investment firm The Xander Group Inc., in its first noteworthy commercial office deal, will invest US$ 350 million (Rs. 2600 Crores) for the development and later acquisition of 4.5 million sq. ft of office space in developer Phoenix Group’s Hyderabad project.
The Hyderabad office project is situated in Gachibowli, the city’s financial district and the buildings are meant to be delivered in phases between 2020 and 2023.
Xander will finance the development of the Hyderabad office project over the course of next few years. After the project is fully constructed, it will be acquired by Xander. This strategy is known as a “develop-to-core” strategy, where the investor funds a development project and stays on until it becomes a rent-yielding, stabilized asset.
Rohan Sikri, senior partner at Xander Investment Management said, “Xander had till now primarily invested in residential projects in Hyderabad. “Hyderabad is an exciting market for us and we are exploring more office and shopping mall deals in the city.”
Arpit Singh, principal at Xander Investment stated, “This develop-to-core acquisition in Hyderabad fits nicely with our existing fully-owned, value-added office portfolio. At this point, the risk-return metrics that many office development opportunities present are attractive.”
“Our intimate knowledge of office markets and tenant demand allows us to distil actionable data. We intend to expand our develop-to core office investment strategy as the right opportunities present themselves.” he further added.
Earlier this year, Xander Group had bought an office building of around 250,000 sq. ft at Embassy Golf Links Business Park in Bengaluru for ?350 crore from the Sanjay Ghodawat Group.
