CapitaLand India Trust, formerly known as Ascendas India Trust and part of the CapitaLand Group, has signed a major deal.
According to sources with direct knowledge of the transaction, as per reported by The Economic Times, CapitaLand India Trust has acquired a 22-story office tower from Aurum Ventures in Navi Mumbai’s Ghansoli locality for Rs 707 crore.
This acquisition marks one of the largest standalone commercial tower purchases by a global institutional investor in India.
The deal, managed by CapitaLand India Trust Management as the trustee-manager of the Real Estate Investment Trust (REIT), includes the multi-tenant Building Q2 located in Aurum Q Parc.
The acquisition is the result of a forward purchase agreement between Aurum Ventures and Ascendas India Trust, established in May 2018. Definitive agreements have now been signed to acquire all issued share capital in Building Q2 for approximately Rs 707 crore. Aurum Ventures will also receive additional payments for incremental leasing within 12 months of the acquisition date.
In November 2021, Ascendas acquired Building Q1, a 6.2 lakh sq ft office space in the same commercial campus, for Rs 353 crore. The combined value of these transactions has exceeded Rs 1,070 crore under the forward purchase agreement.
Building Q2 houses notable multinational companies such as DP World, Mizuho Bank, Lloyd Register, IdeaForge, Technip, ICICI Bank, and Axis Bank. The building has achieved LEED Platinum certification, reflecting its sustainable and efficient design. It commands the highest rental rates in Navi Mumbai and offers amenities including sports courts, lounges, amphitheaters, a creche, and food courts.
The Aurum Q Parc campus is also set to introduce a retail galleria, Aurum Square, which will feature a 1,000-seat Cinepolis multiplex, numerous branded restaurants, sky lounges, and indoor seating areas.
Aurum Ventures is already constructing another substantial office building, Q3, within the same campus, slated for completion by December 2027. This ongoing development is indicative of the robust growth trajectory in Navi Mumbai’s real estate market.
Market Outlook
The Indian real estate market is currently experiencing a buoyant phase, characterized by a surge in institutional investment despite global economic uncertainties. Key segments such as warehousing, residential, and office spaces are driving this optimistic outlook. In the first half of 2024 alone, investment inflows reached $3 billion, a 15% increase from the previous year, according to Knight Frank India.
Foreign investors, particularly from the Middle East, are demonstrating strong confidence in India’s growth potential. This is complemented by a notable resurgence in local private equity investors, whose participation has reached unprecedented levels over the past decade.
The Indian real estate market is currently robust, with substantial institutional investments despite global economic challenges. The sector has seen significant contributions from foreign investors, particularly from the Middle East, reflecting strong confidence in India’s growth prospects.
According to Knight Frank India, investment inflows in the first half of 2024 reached $3 billion, a 15% increase from the previous year. Local private equity investors have also been increasingly active, reaching engagement levels not seen in a decade.