Indiabulls buys Chennai office complex for Rs 600 cr

In one of the biggest commercial property deals in South India, Indiabulls Distribution Services, owned by Indiabulls Securities, has bought a commercial building complex in Chennai for Rs 600 crore.

The complex is owned by India Land and Properties, owned by a hedge fund Americorp. The complex has three towers with a constructed area of 2.4 million Sq. ft and a leasable area of 2 million sq ft.

Consultants said at Rs 2,500 per square feet, it is a good deal for Indiabulls. "Considering that it is a ready property and located in Ambattur in Chennai, it is a good deal for Indiabulls," said Ashok kumar, managing director of Cresa Partners, a consultant.

The total land area of the complex is over 10 acres. Half of the complex if leased out to Britannia Industries Limited, Royal Bank of Scotland, Kone Elevator, Ajuba, Covenant, Telebuy, IBox and others. Indiabulls is looking to lease out the remaining part, a company executive said.

Indiabulls is looking to fund the transaction through internal accruals and private equity funds and rename the building complex as One Indiabulls Park, Chennai.

The deal has no connection with Indiabulls Real Estate, the realty arm of Indiabulls group, the company executive said.

According to the recent CBRE report, the key southern markets of Bangalore, Chennai and Hyderabad together clocked in about half of the total corporate real estate space take-up among India's leading office markets during the first nine months of the year.

In October this year, Flipkart signed one of the biggest commercial real estate deal in the country when it took three millions sq ft space in Embassy Tech Village in Bangalore. The joint venture between Embassy Group and Blackstone owns the property.