Mumbai: In its first investment in a mixed-used development project in India, Singapore-based sovereign fund GIC Pte. Ltd is set to buy a significant minority stake in real estate firm Provenance Land Ltd, which has built the Four Seasons hotel in Mumbai. The capital from the stake sale would be deployed in developing the Mumbai-based firm’s mixed-used project spread across 4.5 acres in Worli, central Mumbai.
Adarsh Jatia, managing director, Provenance Land, told Mint that the company plans to make fresh investments of around $250 million in developing the land.
GIC has bought over 40% stake in Provenance Land and the size of the transaction is estimated to be around Rs 1,000 crore, according to an executive familiar with the deal who didn’t wish to be named. Jatia declined to comment on the deal size.
At present, the mixed-use development comprises Four Seasons, a 202-room five-star hotel, a 64-storey Four Seasons Private Residences which is under construction, and a proposed office tower, said a joint statement by both the companies. An entity wholly owned by Provenance Land will be managing the development, it added.
“This investment marks a key milestone for Provenance Land, as it directly bears out the intent to expand quickly and strategically into new best-in-class developments and deliver on our vision… GIC’s investment brings us their international expertise in these asset classes,” said Jatia.
This is the second deal for GIC after it bought a 33.34% stake in DLF Ltd’s rental arm for nearly Rs 9,000 crore last year. GIC’s other major real estate investments include a commercial office platform deal with Prestige Group.
“As a long-term global investor, we continue to have a positive outlook on India’s growth potential. This investment is a unique opportunity to acquire a stake in a high-end mixed-use development situated in a prime location in Mumbai,” said Lee Kok Sun, Chief Investment Officer of GIC Real Estate.
Sun said the apart from the Four Seasons properties, the proposed office development is an attractive proposition, given continued demand for quality office space and expected long-term rental growth in Mumbai.