In what could be the city’s largest corporate real estate deal, global fund house Xander will acquire an IT SEZ in Perungalathur, Chennai, from Shriram Properties for $350 million (₹2,300 crore). This SEZ is a part of an integrated development called The Gateway SEZ, the first such campus on the GST Road SEZ corridor.
It is a joint venture between Shriram Properties and SUN-Apollo, one of the leading real estate investors in India. SUN-Apollo has exited fully now. Shriram bought this land in 2006 from Standard Motors in a court-conducted auction.
A source who is aware of the deal said: “Xander will acquire all the assets. They are acquiring over 4.6 million sq ft. Initially, they will pay ₹1,250 crore. The remaining ₹1,050 crore commitment will happen over a period of three years.” He added, “The residential and retail component will be in the hands of Shriram Properties. The SEZ office component is what they are buying.”
Phone calls made to both Xander and Shriram Properties did not elicit any response. Another source in the real estate sector, who was involved in facilitating the deal, said, “Around 1.8 million sq ft is ready now and is operational. IT services firm Accenture is the anchor tenant here and it currently occupies over 1.1 million sq ft. It is Accenture’s primary campus in India. Xander will now start developing 1.9 million sq ft over the next few years.”
Analysts who track the real estate segment said that this deal would create a positive sentiment in the sector, which has been going through a lull. “Institutional funds investing in the market is a sign of positive growth for the IT industry,” said an analyst who wished anonymity.
The Xander Group Inc. is a global investment firm focused on real estate, infrastructure, hospitality, retail and credit in emerging markets. Since 2005, the firm has committed over $2.3 billion of capital to the Indian market across private, public, credit and venture investments.
