Entered in 2006, Hines, a privately owned global real estate investment firm has invested $400 million equity for the development of project in major cities.
New Delhi: US-based real estate firm Hines is expanding its operations by partnering with three local builders in top Indian cities. The main reason is the bullish demand for premium housing projects.
Operating in India since 2006, Hines, a privately owned global real estate investment group has invested $400 million equity for projects in major cities.
In an interview reported by PTI, Hines India MD and Country Head Amit Diwan said the company is in talks with a few local builders and Landowners to acquire new projects through a development management (DM) fee model or through various joint ventures.
“We are witnessing a good demand for premium spaces in both housing and office segments. One of the fallouts of the COVID pandemic has been that people are moving towards quality products,” he said.
Diwan also mentioned about the increasing demand for quality and trusted developers while other developers find it difficult to market their product.
He said the company is also evaluating proposals to acquire development projects in Bangalore, Mumbai, and Pune
“We expect to close at least three deals, most likely in residential, during this financial year,” he said.
Diwan said Hines India has successfully completed two commercial projects in Gurugram and currently is on a path to develop seven new projects (three housing and four office projects) in Gurugram, Mumbai, Bengaluru, and Pune.
“All seven under-construction projects are likely to be completed and delivered between 2022 and 2025,” he added.
The two commercial projects in Gurugram— ‘One Horizon Centre’ is completed under the joint venture with DLF and ‘Skyview Corporate Park’ in partnership with Shyam Telecom. However, the company sold its stakes in both of these projects.
Currently, the company own three housing developments with the partnership of TATA housing. The project is under construction which will develop 750 flats in ‘Serein’ Mumbai. In ‘Parkwest’, there are 1,050 apartments under construction in the city of Bengaluru. The project is developed in partnership with Shapoorji and Pallonji Real Estate. To create its premium housing project in Gurugram, ‘Elevate’, Hines formed a joint venture with Conscient Infrastructure with an estimated cost of Rs 1,500 crore. The company is aiming to develop four office parks that comprise of 10 million square feet area.
After the deal of Rs 650 crore, Hines India bought 30% stakes in DLF’s upcoming commercial project ‘Atrium Place’ in Gurugram. The joint venture between DLF and Hines will go on to develop a commercial project on 11.76 acres of land in Gurugram that was bought for Rs 1,500 crore in an auction hosted by Haryana Government in February 2018.
Last year, the company also partnered with the DNR group in Bengaluru for the development of office space in the IT city with 0.7 million sq. ft. of built-up area. It is developing another 4 million square feet of office space. Hines partnered with Goel Ganga Corporation to develop a premium office complex, comprising 2.4 million square feet area in Pune at an estimated construction cost of Rs 1,200 crore in June 2021.
Hines forayed into Indian real estate from Gurugram and then entered Mumbai in 2017, Bangalore in 2019 and Pune in 2021.
“The plan is to consolidate and grow deeper in each city where we have a presence”, Diwan said, adding that the company could look for more opportunities in real estate markets.
Hines, founded in 1957, is located in 27 countries. It has managed to invest under $83.6 billion in total management as of June 30, 2021. Historically, Hines has developed, redeveloped, and acquired more than 1,480 projects, encompassing nearly 500 million square feet. The company has more than 171 developments around the world.
Published by– PTI