Leading emerging markets investment firm The Xander Group Inc. and an investor consortium led by Dutch pension fund asset manager APG Asset Management N.V. (“APG”), today announced the creation of a US$300 million (Rs. 1800 Crore) venture that will buy income-generating, institutional-grade commercial assets across India's main office markets. Over time, if buying opportunities continue to emerge, the venture’s size may be increased to US$500 million.
The venture aims to capitalize on the continued strong tenant demand for office space, predominantly from companies in the Information Technology and Financial Services industries that serve their global businesses from hubs across India. The venture will solely focus on built, and significantly leased office assets in Mumbai, NCR, Bangalore, Hyderabad, Chennai and Pune.
Sachin Doshi, Head of Non-Listed Real Estate for Asia-Pacific at APG in Hong Kong, said, "In spite of the recent slowdown, India's top 6 cities have consistently witnessed the largest net absorption of office space in the Asia-Pacific region, and perhaps globally. This, combined with limited new development starts for office projects in India, creates a unique demand-supply gap for good quality office space that our venture aims to target."
"We decided to partner with Xander after an extensive review of market participants. We are attracted to Xander's research-led approach, investment rigour and management style, which in our view is critical to succeeding in a complex and often opaque real estate market like India. They don't think purely like a manager, but as asset owners and are very hands-on in their pursuit of value maximization."
Rohan Sikri, Partner at Xander Investment Management Pte. Ltd., Singapore, said, “This new India office venture is part of our continued effort to develop specialized platforms with the right partners, for unique strategies that deliver the required risk adjusted returns to them. While the Indian office market has been relatively resilient through the bad economic environment of the last few years, buyers of Indian office assets need to have the skill to identify and address complex title, construction and regulatory risks, and sweat the real estate after acquisition to preserve and create value. It requires patience, attention to detail and local real estate expertise.”
“We are very pleased to partner with this investor consortium led by APG, who like us, have a long term, value driven orientation and understand the hands on approach required to create value in the Indian real estate market.”
About APG
APG Asset Management N.V. is a Dutch pension fund asset manager in the Netherlands. For its pension fund clients and their 4.5 million active and retired participants from the public and private sectors representing over 30% of all collective pension schemes in the Netherlands, APG Asset Management N.V. manages pension assets of more than €352 billion as at the end of February 2014.
About The Xander Group Inc.
The Xander Group Inc. is a global investment firm focused on the infrastructure, hospitality, retail and real estate markets. Since 2005, the firm has committed over US$2 billion of capital to the Indian market across private, public and credit investments. The firm combines extensive industry knowledge with global experience and relationships, and works with quality promoters, partners and companies across the growth cycle to build and scale businesses and generate superior long term returns. Please visit www.thexandergroup.com for further information.
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