Hiranandani Group is considering launching an office real estate investment trust (REIT). The proposed REIT, which can be defined as a company that owns or finances income-producing real estate in a variety of property sectors, is expected to have a portfolio of approximately 7 million square feet (sq ft) of commercial real estate at the group’s integrated developments in Powai and Thane in the sprawling Mumbai Metropolitan Region (MMR). Investors are showing a strong interest in Yotta, the group’s pure-play data centre unit. Yotta’s revenue is likely to approach or exceed that of the group’s residential property industry during the next few years.
It also intends to invest Rs 32 billion to construct five housing communities in Mumbai. Though Hiranandani Group intends to run the company as a family business, it has recently expressed an interest in raising external money. The company teamed with private equity firm Blackstone to establish Greenbase Industrial and Logistics Parks, which are now active in four key regions across the country.
The firm is optimistic about expansion in its main residential sector in Mumbai’s outskirts, notably in locations near the future Navi Mumbai International Airport. It is constructing the 550-acre Hiranandani Fortune City, which is approximately 20 kilometres (km) from the under-construction airport. A section of Fortune City, which includes residential zones and a data centre. The company believes there would be a greater emphasis on slum redevelopment in Mumbai.
Source: Construction Week
