The real estate arm of emerging markets-focused investment firm, The Xander Group, has invested $350 million in a real estate development project in Chennai, India.
The firm has acquired a 100 percent interest in Gateway SEZ from Indian developer Shiriam Properties for $190 million, with a further commitment of $160 million to expand the commercial component of the SEZ. The deal involves 1.7 million square feet of occupied and operational SEZ, and a partnership with Shriram to deliver the under construction 1.9 million square feet.
“This acquisition demonstrates our continued interest in large, well-positioned assets with growth potential across gateway cities in India, and nicely complements our existing office portfolio”, said Rohan Sikri, senior partner at Xander.
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 look to develop an additional 1 million square feet of office space.
“We are pleased to be working with Shriram Properties to expand our existing Chennai footprint. We see the opportunity to deliver additional high-quality supply in a market where vacancy is rapidly falling,” added Sikri.
Xander focuses on real estate, infrastructure, hospitality, retail and credit in emerging markets. Since 2005, the firm has committed over $2.3 billion in equity to the Indian market across private, public, credit and venture investments.
Back in November Xander teamed up with APG Asset Management and Indian shopping mall developer and operator, Virtuous Retail, to launch a $450 million retail platform.