Mumbai: Realty player Shriram Properties on Tuesday said it has signed a USD 350 million (Rs 2,290 crore) deal with Xander Group, making it the largest private equity deal in the real estate space.
Under the deal, Xander acquires 100 percent stake in Shriram's Gateway SEZ in Chennai for USD 190 million (Rs 1,250 crore), with a further commitment of USD 160 million (Rs 1,040 crore) towards expansion of the IT SEZ, the company said in a statement.
The deal involves 1.7 million square feet of occupied and operational SEZ, and a partnership with Shriram Properties to deliver the under construction 1.9 million square feet, it said.
"This acquisition demonstrates our continued interest in large, well-positioned assets with growth potential across gateway cities in India, and complements our existing office portfolio," said Rohan Sikri, senior partner, The Xander Group.
He further said that with this deal, Xander is expanding its existing Chennai footprint.
"We see the opportunity to deliver additional high-quality supply in a market where vacancy is rapidly falling," Sikri added.
Shriram Gateway, is a 58-acre integrated township project including office space, a shopping mall and residential apartments.
Shriram will continue to develop and own the residential and retail components comprising 2.6 million square feet while Xander will have the ability to develop an additional 1 million square feet of office space, it said.
"The project offers a plethora of opportunities and is a source of employment generation across various sectors in Tamil Nadu. We plan to develop many such mixed used development projects across cities in India. With this association we will be able to enhance our position as a leader in the real estate space," managing director, Shriram Properties M Murali said.
The realty player had recently announced its plans to invest Rs 15,000 crore over the next 7-8 years for the development of around 30 ongoing projects, across six major cities - Chennai, Bengaluru, Hyderabad, Visakhapatnam, Coimbatore and Kolkata.