Bullish on demand for premium housing and office spaces, US-based Hines plans to expand its India business and is targeting to form at least three local partnerships for projects across major cities.
Bullish on demand for premium housing and office spaces, US-based realty firm Hines plans to expand its India business and is targeting to form at least three local partnerships for projects across major cities.
Hines, a privately-owned global real estate investment firm, entered India in 2006 and has so far invested over USD 400 million equity for development of projects across major cities.
In an interview with PTI, Hines India MD and Country Head Amit Diwan said the company is in an advance stage of talks with a few local builders and landowners for acquiring new projects through development management (DM) fee model or joint ventures.
“We are witnessing a good demand for premium spaces in both housing and office segments. One of the fallouts of the COVID pandemic has been that people are moving towards quality products,” he said.
The market share of quality and trusted developers are rising while others are finding it difficult in marketing their products, Diwan highlighted.
“We are receiving numerous proposals from local developers and landowners for partnership. We are evaluating all proposals for tie-ups. We are in advance stage of talks for two residential projects in Gurugram and one in Noida,” he said.
Diwan said the company is also evaluating proposals of acquiring projects in Bengaluru, Mumbai and Pune.
“We expect to close at least three deals, most likely in residential, during this financial year,” he said.
Elaborating on the existing portfolio, Diwan said Hines India has so far completed two office projects in Gurugram and is currently developing seven projects (three housing and four office projects) in Gurugram, Mumbai, Bengaluru and Pune.
“All seven under-construction projects are likely to be completed and delivered between 2022 and 2025,” he added.
In India, Hines has completed two prime office complex projects in Gurugram –‘One Horizon Centre’ in a joint venture with realty major DLF and ‘Skyview Corporate Park’ in partnership with Shyam Telecom.
The US-based firm has exited from both these projects by selling its stakes.
At present, Hines has three housing projects under construction. It has partnered with Tata Housing to develop 750 flats in ‘Serein’ housing project in Mumbai.
Another 1,050 apartments are under construction in ‘Parkwest’ housing project in Bengaluru, which is being developed in partnership with Shapoorji and Pallonji Real Estate.
Apart from three housing projects, Diwan said the company is currently developing four office parks, comprising around 10 million square feet area.
DLF and Hines would jointly develop a prime commercial project on 11.76 acre land parcel in Gurugram that was bought for nearly Rs 1,500 crore through e-auction conducted by the Haryana government in February 2018.
Last year only, Hines partnered with Bengaluru-based DNR group to develop an office complex in the IT city with 0.7 million sq ft of built-up area.
In Bengaluru, it is developing another 4 million square feet office space.
In June 2021, Hines tied up with Goel Ganga Corporation to develop a premium office complex, comprising 2.4 million square feet area, in Pune at an estimated construction cost of Rs 1,200 crore.
Hines has signed this project on a development management fee model.
Hines forayed into Indian real estate from Gurugram and then entered Mumbai in 2017, Bangalore in 2019 and Pune in 2021.
“The plan is to consolidate and grow deeper in each city where we have presence,” Diwan said, adding that the company could explore opportunities in other major property markets.
Hines, founded in 1957, has a presence in 27 countries.
It oversees investment assets under management totalling approximately USD 83.6 billion as of June 30, 2021.
Historically, Hines has developed, redeveloped or acquired more than more than 1,480 properties, totaling nearly 500 million square feet.
The firm currently has more than 171 developments underway around the world.
Source : Business-Standard