Singapore's sovereign wealth fund GIC has acquired 49 per cent stake in realty firm Provenance Land for an estimated Rs 1,000 crore, according to sources.
GIC has been investing heavily in the Indian real estate market in the past few years. It had in December last year bought 33.34 per stake in DLF's rental arm DLF Cyber City Developers Ltd (DCCDL) for about Rs 9,000 crore. DCCDL holds 27 million sq ft of price commercial assets earning an annual rental income of Rs 2,400 crore.
Provenance owns 4.5 acres at Worli in central Mumbai where the company already has a 5-star Four Seasons Hotel which has 202 rooms. It plans to develop Four Seasons Private Residences and a office tower with 7 lakh sq ft area.
"GIC is acquiring a significant minority stake in Provenance Land, the developer that first introduced the Four Seasons brand into India," the two companies said in a joint statement.
When contacted, Provenance Land MD Adarsh Jatia did not disclose the deal value or the stake diluted by it.
Market sources said however that GIC has bought 49 per cent stake for an estimated Rs 1,000 crore.
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Jatia said the office tower would be delivered by 2022 while the branded private residences by 2020.
"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," Jatia said.
With our Worli development, he said the company is bringing a marque mixed-used project in the heart of Mumbai.
"GIC's investment brings us their international expertise in these asset classes. Their core strengths of a disciplined approach to investing long-term capital and sound governance structures will no doubt help us create additional value for all stakeholders," Jatia said.
Chief Investment Officer of GIC Real Estate Lee Kok Sun said: "As a long-term global investor, we continue to have a positive outlook in India's growth potential in the long run. This investment is a unique opportunity to acquire a stake in a high-end mixed-use development situated in a prime location in Mumbai."