Xander Group realty plans $350-mn investment

In a first-of-its-kind move, the real estate equity arm of global investment firm,the Xander Group, in recent decision has decided to invest $350 million in the development and subsequent acquisition of 4.5 million sq.ft of office space in developer Phoenix Group’s project in the financial district of Gachibowli in Hyderabad, said official sources, claiming that the group will finance the development of the Hyderabad office project over a period of time and once it is completed, will acquire the asset. The deal is a “develop-to-core” strategy, where the investor funds a development project and stays on until it becomes a rent-yielding, stabilized asset. This develop-to-core acquisition in Hyderabad fits with the existing fully-owned, value-added office portfolio. At this point, the risk-return metrics that many office development opportunities present are attractive. The company’s knowledge of office markets and tenant demand allows it to distil actionable data, said principal at Xander Investment, Arpit Singh, reiterating that Hyderabad is fast gaining momentum among investors, multinational occupiers and developers, giving its commercial office market a boost big enough to challenge Bengaluru’s top position.