The Reddy family, renowned for their expansive property empire, is making a groundbreaking move by welcoming external investors to participate in India’s thriving real estate market, which has stood strong amid a global economic slowdown.
GAR Corporation, the family’s flagship company, seeks to raise up to $200 million from family offices and sovereign wealth funds by selling a minority stake in one of Hyderabad’s grandest commercial developments.
The spectacular Infobahn business park, owned by GAR, boasts twin towers with a combined rentable space of 3.5 million square feet, spanning 27 floors. Already a quarter of the space has been leased to tenants, making it a highly attractive investment opportunity. The buildings are equipped with modern amenities, including a central food court, gym, and day-care center, adding to the allure of the project.
With a net worth surpassing $1 billion, the Reddy family has solidified their presence in Hyderabad, owning over a dozen office blocks within the city. Now, they aim to capitalize on the region’s growth potential and are seeking partnerships with external investors.
India’s commercial real estate market has defied the global downturn, defying predictions of a slump triggered by rising interest rates aimed at combating inflation. Vacancies in the country’s office market have reached their lowest levels since 2020, signifying the sector’s remarkable resilience. Hyderabad, a rapidly expanding city, has seen rental growth in its business district, attracting major companies such as Amazon.com Inc. and Microsoft Corp.
Founded in the early 1980s by Gavva Amarender Reddy, now the chairman of the firm, GAR Corporation has attracted esteemed global companies like HSBC Holdings Plc, PepsiCo Inc., and Capgemini SE as tenants. His son, Abhinav, serves as the managing director, carrying on the family’s successful legacy. Apart from their existing properties, GAR also holds extensive land holdings in India, totaling approximately 20 million square feet.
To execute their ambitious plans for diversification and further property development, GAR is offering a stake of at least 30% in towers eight and nine of the Infobahn project. Although the Reddy family fully owns GAR, they see the infusion of outside capital as a strategic move to enhance growth opportunities.
Assisting with the fundraising efforts is Participant Capital, a reputable advisory firm for family offices and institutional investors, playing a pivotal role in facilitating GAR’s ambitious expansion plans.
As the Indian real estate sector continues to shine amidst global uncertainties, the Reddy family’s decision to invite outside investors presents an exciting opportunity for all stakeholders looking to be part of Hyderabad’s remarkable commercial marvel.
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