Minneapolis investor lends $155m to two projects in Gachibowli Financial District
Minneapolis-based Värde Partners Group, which sees significant opportunity across the Indian office market for both the financing and purchase of assets, has provided US$155 million facility to refinance and fund the completion of over 2.5 million square feet across the two Grade A developments owned by Phoenix Group in the Gachibowli Financial District of Hyderabad.
“We see significant opportunity across the Indian office market for both the financing and purchase of assets, in a market that offers potential strong cash-flow visibility, multinational tenants and strong absorption,” said Tim Mooney, Partner and Global Head of Real Estate at Värde Partners in announcing the deal on 6 April 2021 from Mumbai.
“India is a dramatic example, but emblematic of what we’re seeing across the Asia Pacific region, and across the globe. We believe that a real estate cycle is upon us and while not nearly as pronounced as the cycle brought on by the global financial crisis, the opportunity set is significant and growing,” said Mooney.
Hyderabad is a recognized global tech hub, with the city’s financial district home to a large number of multi-national tech, financial services and professional services companies, said the investment group.
Hyderabad is one of the fastest growing metropolitan cities in India and one of the strongest markets in the country for office absorption.
Värde believes that India’s real estate market is experiencing a significant imbalance in the supply and demand of capital, leading to many businesses with robust balance sheets seeking alternative sources of capital.
To date, over 1.5 million square feet has been pre-let to two multi-national companies, reflecting the quality and location of the assets. Construction of both projects is well-advanced, with sub-structure development complete and super-structure phases underway, said the group.
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $75 billion since inception and manages more than US$14 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe.
Phoenix Group, a Hyderabad focused group, is one of the leading Grade A commercial office space developers who have successfully developed more than 12 million SF of mixed-use developments. The group has a healthy pipeline of SEZ and Office space developments and has been at the forefront of developing and leasing quality office space in Hyderabad. Investment by Ascendas India Trust in the SEZ development projects and Lake Shore India Advisory in the mall projects are some of the notable strategic investments attracted by the group in the past. #investment #projects #properties #rentals /fiinews.com
