Bengaluru sees 8% CAGR in rental growth over last decade; NCR, MMR remain flat
Puravankara New Bangalore, Despite the robust growth of technology sectors and steady increase in headcount, the rentals of the commercial offices did not grow much in the last decade.
At a pan India pan India level, the CAGR of rental growth for the previous decade has been merely 2%, which is lower than even the inflation rate. At a city level, Bengaluru witnessed about 8% CAGR in rental growth, while the NCR and the MMR remained almost flat over the last decade.
Puravankara in talks with global funds for Rs 3,000-crore investment platforms
Real estate company Puravankara is in talks with global institutional investors to form two separate investment platforms with a combined corpus of Rs 3,000 crore by leveraging some of its assets to fund its future expansion plans.
The Bengaluru-based company is in talks with Ascendas, GIC and Brookfield Properties among others for the proposed investment, two people close to the deal said.
Puravankara New Bangalore, The deal will see Puravankara offering 2.5 million sq ft of office assets in Bengaluru and the funds will be used by the builder to finance its ongoing housing projects and for commercial portfolio expansion, they said.
“We are in preliminary talks with multiple entities around this business decision as well as our vision for geographical expansion,” Puravankara said in an email response. “Currently, all these discussions are in extremely nascent stages and far from being crystallised.”
Brookfield, GIC and Ascendas did not respond to emailed queries as of press time Thursday.
Puravankara said it is expanding its commercial portfolio in alignment with prevailing market sentiment.
One of the persons cited above said the builder “plans to double its commercial portfolio to 10 million sq ft over the next five years”.
The Indian commercial real estate segment is expected to continue to witness increased interest from global institutional investors like GIC, Ascendas, Blackstone and CPPIB.
The segment had seen two major deals last year – Blackstone Group took over 21 million sq ft of completed and under-construction income-generating assets from Prestige Estates for around $1.2 billion, and Brookfield Group bought RMZ Corp’s 12.5 million sq ft office and co-working assets for $2 billion.
Puravankara New Bangalore
Puravankara recently forayed into plotted development in a bid to diversify its portfolio. It plans to launch 5.5 million square feet of plotted development across Bengaluru, Coimbatore, and Chennai, apart from venturing into Pune, Hyderabad, and Mumbai through its subsidiary Purva Land.
The company has completed and delivered 40 million sq ft of projects and has around 21 million sq ft under development across residential and commercial segments. Puravankara has seen a 40% year-on-year jump in quarterly sales, with residential real estate showing green shoots of revival across the country.