Global private equity firm Brookfield Asset Management, has signed an agreement with the Hiranandani Group to acquire its offices and retail space in Powai in Mumbai, for a whopping Rs 6,700 crores. Confirming the development, sources from Hiranandani said that discussions were on for quite some time and they will close the deal in the next few months.
At Rs 6,700 crore, this is one of the largest deals in the commercial space and also of the year. Hiranandani Group, a partnership between brothers Niranjan Hiranandani and Surendra Hiranandani, owns 4.5 million sq ft of office and retail space in Powai, including Hiranandani Business Park and Hiranandani Gardens.
According to experts, the deal is a strategic move, especially after the government eased the norms for the creation of real estate investment trusts (REITs). “Brookfield has been active in the Indian real estate market for many years. This deal can be viewed as a strategic move by both the parties, especially after the government and SEBI eased the norms pertaining to the creation of REITs,” the expert said.
The Toronto-based firm had recently said that it would invest over USD 2 billion in the next 2-3 years, as part of its strategy to buy out upscale offices and commercial towers, as well as stranded road, power and utilities infrastructure, as it aims to double its existing asset base in the country.