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Reco Berry Private Ltd, an affiliate of Singapore’s GIC, plans to purchase up to 62.6 percent of Nirlon Ltd to the tune of US$197 million, media reports said.
In line with this, it has agreed to acquire up to 30.8 million shares in Nirlon Ltd for 222 rupees or S$4.63 apiece. Representing a 34.2 percent stake in the Indian IT office park developer, the shares will be bought from Geraldton Finance Ltd, Real India Invest Aktiengesellschaft and promoters Maneesha Rahul Bhat, Mallika Vir Advani, Bilby Pte Ltd and Guildford Pte Ltd.
Reco Berry also intends to purchase 4.5 million additional shares from Nirlon’s existing promoters Kunal V Sagar, Rahul V Sagar, Alfano Pte Ltd and Deltron Pte Ltd for the same price in order to secure another five percent shareholding.
On top of that, the affiliate will make an open offer to buy another 28.4 percent stake from Nirlon’s public stockholders at the same price. Assuming full take-up, Reco Berry is expected to control the developer with its 62.6 percent stake following the completion of all transactions.
Nirlon owns the Nirlon Knowledge Park, a high-quality, IT office park spanning 3.3 million sq ft. Located along Western Express highway in Goregaon, the park is a 7 km drive from the airport and 13 km from Bandra Kurla Complex, Mumbai’s emerging central business district.
“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 Loh Wai Keong, GIC Real Estate Pte Ltd’s Managing Director & Co-Head for Asia.
“We look forward to working closely with the Sagars and their management team. This acquisition is consistent with our strategy in India to invest in assets that generate stable income streams over the long term.”
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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