Burman GSC today said it has acquired the stake of its joint venture (JV) partner, Ascendas India, in the special economic zone (SEZ) in Gurgaon.
Burman GSC and Ascendas had a 49:51 JV partnership for the OneHub SEZ project. With this transaction, Burman GSC is now 100 per cent owner of the SEZ, it said in a statement.
Burman GSC is a JV between the Burman Group and private equity fund Golden State Capital (GSC).
"The acquisition was done for an undisclosed amount and requisite approvals have been taken from the Board of Approval for SEZs," it said.
However, sources said enterprise value of the SEZ, spread across over 62.6 acres, is in the range of Rs 250-300 crore.
Burman GSC has used promoter equity to fund the buyback of the stake. The Gurgaon-based real estate major continues to remain debt free even after funding the purchase, it added.
The firm is now putting a new strategy for the project, including complete rebranding and re-positioning. This project will target technology companies. The new and refreshed brand for this project will be known as Gurgaon Technology Valley (GTV), making it the epicentre of technology firms, it said.
Burman GSC Chairman Mohit Burman said: "We are very confident about long-term potential of the site and have committed capital for development of leased assets for income generation. We plan to develop it as the most preferred destination for commercial space occupiers in North India."
This will be one of the most efficient buildings in India with over 80 per cent efficient floor layout and the firm will put in place an aggressive pricing strategy, which would be in the sub Rs 30 (per sq feet per month) range, he added.
"Our first block of close to 5,90,000 sq ft, constructed by reputed contractor Shapoorji & Pallonji, has been completed and is now ready for fit-outs," Burman said.
GTV is is located on main Sohna Road, a 4 lane National Highway. The overall development potential of the GTV is 4.8 mn sq ft. Phase-I of the project with 590,000 sq ft of leasable space has already been developed and is being leased out.
The office sector in India has continued to outperform other real estate assets classes, with tenants showing strong and steady demand, Burman GSC said.
Various reports indicate that demand for Grade A office space is outstripping supply, with many new Indian start-ups in the technology space, global MNCs, IT and telecom companies expanding operations in India, it added.
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