SINGAPORE - Sovereign wealth fund GIC is injecting up to $290 million into Mumbai-listed developer Nirlon in its latest real estate investment.
Nirlon owns Nirlon Knowledge Park, a professionally planned, large-scale information technology office park in Mumbai, India. The park comprises seven blocks and is spread across a total construction area of 3.3 million square feet.
"Nirlon has created a high-quality asset and we are excited about supporting the next phase of growth and asset enhancement to build sustainable value for this development," said Mr Loh Wai Keong, GIC Real Estate's managing director.
"This acquisition is consistent with our strategy in India to invest in assets that generate stable income streams over the long term."
The acquisition will be made through GIC affiliate company Reco Berry Private Limited.
Reco Berry on Tuesday signed agreements to purchase up to 30.8 million shares from existing Nirlon shareholders for 222 rupees (S$4.63) apiece, amounting to a 34.2 per cent shareholding in Nirlon.
Reco Berry will then make an open offer to the public shareholders of Nirlon for up to an additional 28.4 per cent stake in the firm at the same price.
On completion of the open offer and assuming full take-up, Reco Berry will hold 62.6 per cent of Nirlon.
Reco Berry has also signed agreements, subject to conditions including the response to the offer, to purchase up to 4.5 million shares from Nirlon's promoters, representing a 5 per cent stake.
These promoters include Nirlon's executive vice chairman, Mr Kunal Sagar, and its executive director, Mr Rahul Sagar, who GIC said were instrumental in the conceptualisation and development of Nirlon Knowledge Park.
Reco Berry is also in discussions with certain other shareholders to acquire up to 1.8 million equity shares representing a 2 per cent shareholding in Nirlon.