Deutsche Bank arm buys stake in Golden Gate

The real estate development company sold the stake for $70 mn.

RREEF, the global alternative investment management business of Deutsche Bank, advised by Deutsche Asset Management (India), has made its first real estate investment in India.

RREEF has nearly completed the purchase of an undisclosed stake in Bangalore and Hyderabad-based real estate development company, Golden Gate Properties, for $70 million (Rs 273.5 crore).

Golden Gate Properties is an integrated real estate development company and it has to date a portfolio of 10 completed projects - 8 residential apartment developments and 2 commercial projects in established neighbourhoods within Bangalore and Hyderabad.

The company was advised by Fortune Financial in this transaction. Golden Gate is also in the process of building 20,000 units across 9 projects with a built-up area totalling 23 million square feet.

It also has plans to build mixed-use developments and Special Economic Zones (SEZ) across south India.

"India is presently a particularly attractive emerging real estate market for our high return-oriented clients and in time will mature into an important investment destination for RREEF's broader base of institutional and retail clients. Golden Gate Properties can provide us with an important cornerstone for further investment in India," said Kurt Roeloffs, CEO, Asia Pacific, RREEF.

Kishore Gotety, who heads Deutsche Asset Management's real estate and infrastructure advisory services arm in India, highlighted the key elements that made the investment attractive.

"Golden Gate Properties is an experienced developer with a strong track record in completing projects. I believe that there is strong and growing demand for quality housing by domestic and foreign workers in the middle-income residential sector and Golden Gate projects are typically located in some of south India's fastest-growing centres for IT activity."

K Pratap, managing director of Golden Gate Properties, said, "Looking forward, Golden Gate will continue to focus on its core business in Hyderabad, Chennai and Bangalore, while seeking to grow its presence by selectively undertaking developments in other asset classes in cities which are witnessing a similar demand for ITeS companies. The increasing growth of the service sector is expected to push growth in the real estate markets in key centres across India for years to come," he said.