Mapletree India China,a wholly-owned subsidiary of Temasek Holdings of Singapore,has acquired 100% stake in a Bangalore technology park for Rs 800 crore.This is the largest private equity deal in the citys real estate sector in three years.The international fund,which invests in real estate firms,has completely bought out the promoters of Assetz Global Technology Park,at least three people with direct knowledge of the deal told ET.The project is a joint venture between development and marketing firm Assetz Property Group and Delhi-based investor Mithilesh Tripathy.The promoters did not have funds to execute the project.The deal was closed at Rs 4,000 per sft,which,though big,is lower than expectations, said an investment banker who did not want to be named.Multiple banking sources familiar with the development said the company was in talks with funds such as Mapletree and GIC to liquidate the plot since last year and Mapletree emerged as the front-runner to buy the asset.Assetz Global Technology Park confirmed the development but refused to name the fund house.The due diligence is going on and the deal is yet to be signed, said a senior executive at AGTP.Tripathy could not be reached for comment.Global Tech Park,on Bangalores Outer Ring Road,has a developable area of 15 acre,or 2.5 million sq ft.As of October,5 lakh sq ft of developable area within the business park was operational,leased to LSI Logic,an infotech firm.The park was tailored to meet the needs of IT occupiers in Bangalore and was expected to be fully operational in 2011,but was put on hold, said another person with direct knowledge of the deal.So far,the company has developed 3 million sq ft of commercial space,and has around 30 million sq ft under construction that is slated for completion in 3-5 years.While builders in other big cities are finding it difficult to raise funds for projects,Bangalore has been attracting large private equity deals.The largest real estate private equity deal closed in 2011 was when Blackstone picked up 37% stake in Manyata Tech Park,the country's largest operational tech SEZ for over Rs 1,000 crore ($200 million).The property is a JV with south-based Embassy Property Development and landowner,Veeranna Reddy.During the July-September quarter this year,PE deals worth $324 million were reported in the real estate,housing and construction sector,an increase of 30% in aggregate PE deal value compared with the April-June quarter,and a decrease of 34% when compared to the same period last year,says a report by Ernst & Young.Bangalore continued to see healthy transaction activity in the same quarter,especially in the large office format space.The city recorded total absorption of 7 million sq ft till Q3 of CY 2011,an increase of 20% over the last year,with corporates looking for consolidation and expansion plans,mentioned a report by CB Richard Ellis,a market research firm.There is huge demand for commercial real estate in Bangalore,but challenge is unavailability of ready-to-occupy space.Many clients are pre-committing in ongoing space,with absorption expected to cross 10 million sft by the end of 2011, said Ram Chandani,deputy managing director,South India at CBRE.The third quarter saw stronger leasing activity with HULs lease of 400,416 sq ft in Prestige Shantiniketan,Airbus taking 1,20,000 sq ft in Xylem,Broadcom leased 2,60,000 sq ft in RMZ Ecospace and NetApp picked up 1,12,029 sq ft in Embassy Golf Links.Assetz is a property development service company with a focus on complex,mixed use,investment grade projects.Assetz brings a structured approach to developing and delivering real estate projects from land identification and inception design,construction,financing,marketing,final occupation and ongoing asset management.Mapletree India China Fund is a dual-country total return fund,which aims to harness the growth in India and China.It invests in commercial,residential and mixed developments in Tier 1 and 2.As on 31 December 2010,the Group owns and manages more than S$14.4 billion of office,logistics,industrial,residential and retail/lifestyle properties,comprising S$7.1 billion of owned real estate.
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