Shapoorji Pallonji Group Divests Hyderabad Project Stake for Rs 2,200 Crore

In a significant move within the Indian real estate sector, the Shapoorji Pallonji Group, grappling with debt issues, has offloaded its stake in a prime Hyderabad commercial property for a whopping Rs 2,200 crore. The transaction involves the sale to a consortium led by Xander Group and includes the Singapore-based sovereign wealth fund, GIC. This partnership has acquired the stake in TSI Business Parks Hyderabad Pvt Ltd, which is the proprietor of the Waverock asset, according to sources familiar with the matter.

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The investment platform SPREF II, jointly owned by Shapoorji Pallonji Group and German insurer Allianz, initially secured a controlling interest in TSIBPH back in December 2019. Waverock, situated in the IT hub of Gachibowli in Hyderabad, boasts a gross leasable area of approximately 2.4 million sq ft. This area is now under new ownership following one of the largest real estate deals in India for the fiscal year 2024-25.

Despite the sale, details regarding the exact financial benefit to the SP Group from this transaction remain unclear due to undisclosed specifics about their stake percentage in SPREF II. Nonetheless, this deal highlights the ongoing allure of Indian real estate to global investors.

Rajesh Agarwal, Chief Executive of Shapoorji Pallonji Investment Advisors, commented on the transaction's significance, emphasizing the attractive nature of Indian real estate. Meanwhile, Arpit Singh, a Partner at Xander Investment Management (XIM), expressed enthusiasm about adding Waverock to their portfolio. He noted that this acquisition would enhance their offerings to both existing and new tenants seeking premium office spaces in key Indian cities.

Xander Investment Management, also based in Singapore like its new partner GIC, has a long history of investing in India. Over the past two decades, XIM has developed or acquired over 100 million square feet of property across various asset classes including office spaces, retail areas, industrial sites, hotels ranging from budget to luxury, warehousing facilities, residential condominiums, and townships.

This recent transaction not only underscores the vibrancy of India's real estate market but also reflects the strategic shifts companies are making to navigate financial challenges while capitalizing on investment opportunities within the country's growing economy.