SINGAPORE - Singapore's sovereign wealth fund GIC announced Thursday (Oct 22) that it has partnered New York-based real estate company Tishman Speyer to co-own an office development project in Hyderabad, India.
The partnership will be in a form of a 50-50 joint venture.
Located near the high-growth financial district employment corridor in the capital of southern India's Telangana state, the total area of the project will be 2.5 million sq ft upon completion. It will house more than 20,000 professionals.
"GIC is confident in Hyderabad's future as one of the fast-growing cities in India," said Mr Loh Wai Keong, managing director and co-head Asia, GIC Real Estate.
The new investment will be an "accretive income asset" in GIC's portfolio, he said.
GIC declined to disclose the amount of its investment.
The first two phases of WaveRock, as the project is called, were completed in 2010 and 2014. The existing office space of 1.5 million sq ft has been fully leased to global technology, industrial and services giants such as TCS Accenture, DuPont, Cap Gemini, BirlaSoft and other high-growth multinational companies.
The final phase is expected to be completed over the next two years.
"GIC has been one of the world's most successful institutional property investors for many years," said Tishman Speyer senior managing director Michael Spies.
"The decision to co-invest in the Waverock project with us is very exciting and gratifying. We are very confident that this will be a successful collaboration and that Waverock will continue to be the cornerstone of our firm's growing presence in India."
"With a young, internationally exposed and growing professional workforce, corporates are demanding and choosing best-of-class office environments that are institutionally-owned and asset-managed," said Mr Avnish Singh, managing director and country head-India for Tishman Speyer.
"WaveRock is a demonstration of this and we hope to replicate our success in other key markets around India," he added.