Allianz-Shapoorji Pallonji JV picks WaveRock Complex for Rs 1,800 crore

Hyderabad: SPREF II Pte Ltd, a joint venture of Allianz Group and Shapoorji Pallonji Group, bought Waverock Complex, a 2.4 million sqft IT SEZ in Hyderabad for Rs 1,800 crore ($250 million). SPREF II has purchased it from TSI Business Parks (Hyderabad) Ltd.

US-based Tishman Speyer and Singapore sovereign wealth GIC are the joint owners of the WaveRock property. The Singapore wealth fund in 2015 bought a 50 percent stake in it. The WaveRock Complex is at Gachibowli financial district in the city. The IT Special Economic Zone (SEZ) has four office towers with some large multinational companies such as Apple, Tata Consultancy, Accenture and DBS.

Rushabh Desai, CEO (Asia Pacific), Allianz Real Estate, said: “WaveRock is one of the marquee commercial complexes in India and is a terrific addition to Allianz. SPREF II bought SP Infocity in Pune. Our first investment is outperforming our plan. India continues to offer attractive risk-adjusted returns to our investments.”

Global insurance firm Allianz Group in October 2017 inked a pact with Shapoorji Pallonji Group to set up a joint venture SPREF II fund. The $500 million real estate JV fund is investing in commercial office spaces in India. With this JV, the German firm made its first investment in real estate sector in India.

SPREF II aims at leveraging structural trends in six tier-1 cities for building a long-term, cash flows in its office portfolio. The JV focuses on acquiring a blend of develop-to-core, forward purchases in India. It also considers stabilized or stabilizing assets, said Singapore-domiciled fund. Hyderabad is among the six cities in the priority list of the fund. The other cities include Mumbai, Bangalore, Pune, Chennai and National Capital Region.

“The acquisition of WaveRock shows the confidence of foreign institutional investors in the Indian real estate sector. As part of our vision, we made the investment in line with creating a sustainable commercial real estate portfolio across key metros in India," said Rajesh Agarwal, chief executive officer of Shapoorji Pallonji Investment Advisors.

The RockWave Complex gets Rs 145 crore rental revenues annually. Allianze-Shapoorji Pallonji JV made its second property buying in India. In 2017, the JV bought 1.8million sqft SP Infocity for Rs1,100 crore.