Singapore-based Mapletree Investments Pvt Ltd has acquired a prime 8-acre land parcel in Pune for Rs 170 crore from a joint venture firm of real estate construction company Vascon Engineers Ltd.
Vascon Engineers, in a stock exchange filing, said: “Ajanta Enterprises, 50% joint venture of Vascon Engineers, has successfully concluded the sale of land parcel measuring approximately 8 acres for a total gross consideration of Rs 170 crore to a SPV (special purpose vehicle) of Mapletree Investments Pte Ltd situated at Kharadi, Pune.”
The sale deed was executed on December 17 and the entire consideration has already been received by the seller. The transaction was managed by real estate consultancy and professional services firm JLL. With an estimated project cost of Rs 1,000 crore, Mapletree plans to develop over a million sq. ft of world class office space on the Kharadi land parcel in Pune.
The transaction is Mapletree’s first land deal for development outside of Bengaluru in India and marks its entry into the Pune office market. As of March 31, 2019, the company owned and managed around $41 billion of office, retail, logistics, industrial, residential and lodging properties globally.
The sale of land in Kharadi, which is located close to the Pune Airport, can prove to be a big boost to this micro market. Currently, Kharadi enjoys a well-established support infrastructure, including numerous residential options across various price points, along with healthcare, hospitality and retail infrastructure within close vicinity. In addition to a planned grid-like road development connecting Kharadi, there are other infrastructure initiatives which are likely to extend the access and connectivity to this location.
The deal can also strengthen Pune’s real estate market in general as the city is seen emerging as the favoured location by information technology (IT) companies along with Hyderabad and Bengaluru.
According to JLL, Pune witnessed over 6 million sq. ft of leasing activity in 2019. “The deal, in particular, is important for Pune’s real estate market, as it offers the region to develop and grow its commercial footprint at the national level,” said Sanjay Bajaj, managing director (Pune), JLL.