Shapoorji Pallonji and Allianz Real Estate Fund have acquired WaveRock, a top notch address for IT and new-age firms in Hyderabad, from Tishman Speyer and GIC for $250 million.
The 2.3-million sq ft office is currently occupied by global technology and service giants like Apple, DBS, GAP, Du Pont, Accenture and TCS. It is a fully stabilised asset developed by Tishman Speyer, real estate consultancy JLL that acted on behalf of the sellers said.
It is India’s largest commercial space transaction, thus far, in 2019, JLL said. CEO and Country Head – India Ramesh Nair said “the transaction indicates that the real estate market is favourable for newer and bigger investments.”
In a separate statement, Asia Pacific CEO of Allianz Real Estate Rushabh Desai said “This is one of the marquee commercial developments in India and a terrific addition to Allianz’s office portfolio in 24/7 global cities. Office investments in India continue to offer attractive risk-adjusted returns.”
An SEZ development, WaveRock was completed in 2017 and comprises four office towers. The asset is located in the Financial District, a high-growth IT hub and established employment corridor of Hyderabad.
According to Mr. Nair, in spite of the economic slowdown commercial real estate activity in India is likely to increase given the long-term fundamentals of the commercial market. Single asset transactions are expected to rise in 2020, considering the amount of global institutional capital looking at India and with office absorption in the country being the highest in the world. Going forward, foreign capital will continue to play a larger role.
“We believe there will also be newer sources of capital coming from Europe, Canada and Japan, increasing the investment activity,” he said.
Director, Capital Markets, JLL Asia Pacific Priyank Shah said Hyderabad’s growing technology and e-commerce industry was creating demand for premium office spaces.
