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    Virtuous enters Delhi real estate, to invest up to Rs 800 crore

    Synopsis

    In a first round of funding it has invested about Rs 350 crore while total investment would go up to Rs 800 crore, two people familiar with the matter told ET.

    irtuous Retail
    Virtuous Retail’s pan-India portfolio includes prime city center locations in Bengaluru, Chennai, Surat and Chandigarh Capital Region.
    MUMBAI: Virtuous Retail, backed by Dutch pension fund manager APG Asset Management, has purchased an ownership stake in North Delhi Metro Mall that will develop a premium retail facility in the heart of the national capital.

    In a first round of funding, Virtuous has invested about Rs 350 crore while the total investment would go up to Rs 800 crore, two people familiar with the matter told ET.

    An email sent to Virtuous Retail remained unanswered until the publication of this report.

    Virtuous Retail is a joint venture between Singapore-based Xander Group and the Dutch institutional investor. Its India chapter is based in Bangalore.

    Virtuous Retail South Asia Pte. Ltd. (VRSA) is expanding its footprint into New Delhi with such investments to build the retail centre spread across 12.3 acres. The project will be located in Civil Lines, which is near the Delhi University North Campus.

    Yes Securities, the investment banking arm of Yes Bank, is believed to have helped the company in the first round of funding. The bank declined to comment on the matter. North Delhi Metro could not be contacted immediately.

    The privately-held North Delhi Metro Mall (NDMMPL) was incorporated back in 2003. Classified as a non-government company, it has a paid up capital of about Rs 67 crore. Some of its directors include Rakshit Jain, Siddharth Gupta, Arun Mitter, and Sunil Sharma – all industry veterans.

    Virtuous Retail’s pan-India portfolio includes prime city center locations in Bengaluru, Chennai, Surat and Chandigarh.

    Earlier in November, APG Asset Management NV invested $175 million (about Rs 1,150 crore) of fresh equity into Virtuous Retail South Asia Pte Ltd (VRSA) for acquisitions and greenfield project developments.

    ICRA rated NDMMPL as A4 for its short-term credit last year.

    Large global investors have been showing significant interest to own India’s retail real estate in the past few years.

    India’s office property segment retained its dominance in attracting private equity investments in the quarter ended March, recording inflows of $1.7 billion in 10 transactions. Commercial assets accounted for more than 70% of total investments made by private equity players into Indian real estate, ET reported Monday.

    Last year, the Canada Pension Plan Investment Board (CPPIB) said it would invest $250 million in Island Star Mall Developers Pvt. Ltd, a unit of Phoenix Mills Ltd. Island Star owns the Phoenix Market City mall in Bengaluru.

    The funds will be used for acquiring and developing both greenfield assets on newly purchased land banks and existing operating retail assets.


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