GIC, Mapletree in final lap to acquire Chennai’s SP Infocity

GIC, Mapletree in final lap to acquire Chennai’s SP Infocity
07/09/2018 , by , in News/Views

Singapore’s sovereign wealth fund GIC and Temasek-owned real estate asset manager Mapletree Investment have emerged as the final two entities to acquire information technology park SP Infocity jointly owned by Canada Pension Plan Investment Board (CPPIB) and Shapoorji Pallonji Investment Advisors, two people with direct knowledge of the development said.

GIC has bid for the property along with realty developer K Raheja Corp. The transaction for the commercial property, located in Chennai’s Old Mahabalipuram Road, is expected to be worth anything between ₹2,200 crore and ₹2,400 crore. The property has total 2.7 million sq ft of leasable space and is 99.4% occupied with key tenants, including Amazon India, World Bank, HSBC and BNP Paribas.

“The deal has entered the final lap and is expected to be concluded over the next few weeks,” said one of the persons mentioned above. While Mapletree Investment has bid for the commercial property on its own, GIC has bid for the same along with its partner realty developer K Raheja Corp. Both entities — GIC and Mapletree — have been shortlisted based on their initial financial bids and other terms offered by them. Global private equity players Blackstone Group, Brookfield Asset Management, Xander Group and Ascendas-Singbridge Group had also shown interest in acquiring this asset.

CPPIB and Shapoorji Pallonji declined to comment on the story, while ET’s email queries to GIC, K Raheja Corp and Mapletree Investment remained unanswered till the time of going to press. SPREP, a JV company of Shapoorji Pallonji Investment Advisors and CPPIB, acquired this asset in 2015 for about $220 million.

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