* The transaction included sale of a prime commercial land parcel on Richmond Road in Bengaluru’s CBD to SNC Private Limited, a construction sector major in the city
* Bought at an undisclosed amount, SNC plans to develop premium commercial space on the property
* The transaction marks the exit of Piramal’s Indiareit Fund V from its investment in Rida Builders and Promoters – an SPV of Bengaluru based Skylark Developers
JLL India, the country’s largest real estate consultancy and professional services firm, has facilitated the exit of Piramal’s Indiareit Fund V’s investment in an SPV of Skylark Developers, which held the prime commercial land located in the central business district (CBD) on Richmond Road, Bengaluru. The new owner, SNC Private Limited plans to invest over INR 100 crores to develop a world class office space on the land, the release said.
Commenting on the development, Rahul Arora - Managing Director, Bengaluru at JLL said, “The CBD of Bengaluru continues to be highly vibrant in terms of commercial potential. Commercial space absorption in the CBD as well as the broader Bengaluru market has scaled new records in the recent past. There has been a rise in investor interest in acquiring prime commercial land parcels and this development is significant. In line with our core objectives of serving our valued clients, we are pleased to have advised on this asset sale.”
Located in the CBD, the sale of the land on Richmond Road will enable the development of an investment grade commercial project contributing to the restricted supply in the highly sought after office market. The vacancy levels in CBD have remained less than 6% due to which the rentals in CBD have moved up significantly in the last couple of years. Currently rent for grade-A space ranges between INR 150 - 175 per sq ft per month and the land values vary between INR 25,000 - 50,000 per sq ft.