BENGALURU: The Ruias of Essar are in advanced negotiations to sell their Equinox business park in Mumbai to southern real estate developer RMZ Corp for Rs 2,400 crore, or $360 million, according to multiple sources directly familiar with the matter.
“Discussions are in the final leg and the deal will carry an enterprise valuation of Rs 2,400 crore for Equinox,” sources cited earlier in the report said. Diversified conglomerate Essar had been mulling a divestment of its real estate business under Equinox brand for a while now.
It is in separate discussions to sell a luxury housing project in Bangalore to Salarpuria Sattva for just under $100 million, according to recent media reports.
RMZ’s acquisition is the latest in a series of high profile office space deals as large global investors like Blackstone, GIC of Singapore, Brookfield Asset Management, Canadian Pension Plan Investment Board and Middle East sovereign funds have chased down transaction opportunities.
They together acquired assets worth $3 billion during the last calendar year. India’s large grade A office buildings, riding on a robust services economy, has returned stable yields to investors in an otherwise volatile real estate market.
JLL India chairman and country head, Anuj Puri, said in spite of the various influences that shape up real estate markets across India, Mumbai’s inherent equity as India’s financial capital remains undiminished, and will continue to drive major decisions by corporates and investment houses.
In December last year, GIC of Singapore acquired 69% stake in Nirlon, which manages a 2 million sqft office park in in Goregaon suburb, for 1300 crore.
TOI reported two months ago about pharma MNC Abbott acquiring 4.35 lakh sqft in a commercial tower at BKC developed by Godrej Properties for Rs 1,479 crore. That was seen as the biggest transaction for any single user commercial real estate in India.