GIC — a Singapore-based Special Real Estate Fund — signed an agreement to acquire an IT-SEZ (Information Technology-Special Economic Zone) in Hyderabad for Rs 1,050 crore. The SEZ is spread across1.1 million sq.ft. in the Gachibowli area of Phoenix Group.
IT-SEZ in Hyderabad
It has two towers covering 1.8 million sq.ft. The first tower with 7 lakh sq.ft. has already been completed and leased out. Both towers are separate and have independent parks next to the Amazon campus.
The second block, with 1.1 million sq.ft. of space, is currently being built and is slated to be finished in the next 15 months. This entire IT Park has been pre-leased to American IT-major Micron Technologies. It is one of the biggest leasing transactions in the country last year.
The agreement with GIC is a forward-purchasing contract, as after completion of all construction and execution, the project will be carried on by Phoenix Group. As part of the consideration, some amount is paid up-front and the balance is transferred after the completion of the project
In the Indian property sector, increased interest and enhanced allocation of long-term capital is expected to continue from the provided the scarce opportunity for growth in other developing markets.
The key elements of the growth are likely to include patching up the bruised economy, improving trade relations, supporting policy and advancing vaccination programme.
The quarter ending in December saw an insightful recovery in the institutional investment in the Indian real estate, which saw an increase of $3.5 billion. This meant that in 2020, despite a sudden halting due the pandemic, investment of $5 trillion was acquired, corresponding to 93 percent for 2019 transactions.