In the largest commercial property deal in the country, Mumbai-based Hiranandani group has signed an agreement with Canada's Brookfield Asset Management to sell its 4 million sq ft of office and retail space in Powai. The deal is estimated at about $1 billion (Rs 6,700 crore), said a source.
"It is part of succession planning in the family as brothers are pursuing their own interests," the sources said. Hiranandani group, a 50:50 partnership between Niranjan and Surendra Hiranandani, still owns 0.5 million sq ft of office space in Powai and is developing 3,000 apartments in the suburb. The group is developing 5 million sq ft of office space across the country. A Hiranandani spokesperson confirmed the development.
The company, which owns 2,000 acres, has plans of floating a REIT (real estate investment trust) comprising its upcoming projects, the spokesperson said. "We are creating a separate special purpose vehicle. It would take three to four months," the spokesperson said.
"It's a fully priced deal. They would have built the assets over the years and expected a fair value for it," said Rubi Arya, vice-chairman at Milestone Capital, a fund management firm.
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