Debiro Corporation invested Rs 10 billion in the DLF Gurugram building.

Daibero Corporation, a subsidiary of Japanese conglomerate Mitsui OSK Lines, has invested Rs 10 billion in an under-construction office complex in Gurugram. The complex is being developed by DLF in a joint venture with global investment and development firm Hynes, according to three people familiar with the deal. Hynes, which holds a 33 percent stake in the joint venture, facilitated the exit from the Abu Dhabi Investment Authority (ADIA) by bringing in DiBero as an investor. The two companies have formed the Daibiru Hines Trust in Gift City, Gujarat, and plan to invest in more commercial assets across the country.

“With strong growth and increasing transparency, India's real estate market is a bright spot for foreign investment. The fundamentals of the Indian real estate market allow investors to acquire controlling stakes through acquisitions or local subsidiaries. Confidence is likely to get higher,” said Anshuman Magazine, Chairman and CEO – India, Southeast Asia, Middle East and Africa, CBRE. Mitsui OSK Lines declined to comment, while Hines and ADIA did not respond to an email query.

Japanese institutional capital managers have been interested in Indian real estate for years and are now positively inclined to commit capital, with most of the previous investments being in Bangalore and Mumbai. “A major Japanese institutional investor offers an exit opportunity to a sovereign fund investor, in a world-class commercial office project being developed by DLF and Hines, unique in many ways and Testifies to global investors' confidence in both NCR and the Indian real estate markets,” said Ankar Srivastava, Chairman, GenReal Property Advisers (P) Ltd.

Daibero owns and leases 31 properties, including offices, hotel buildings and retail complexes in central Tokyo, Osaka and Sapporo. It also acquired overseas office buildings in Ho Chi Minh City and Hanoi, Vietnam in January 2012 and December 2014, and a new office building in Sydney, Australia, which was completed in 2020.

“We are confident that this trend of foreign real estate equity capital deployment in India will only increase and continue to capitalize on the tremendous real estate opportunities that India offers,” said Srivastava. DLF and Hines are developing this commercial project on 11.76 acres. DLF emerged as the highest bidder in February 2018 for a parcel of land that was auctioned by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) for a record Rs 14.96 billion. The project named Atrium Place is a 2.88 million sq ft Grade A+ office project in Gurugram. Spread over nearly 12 acres, the four-building project is expected to be completed by 2025.

“We expect investment activity to pick up, especially during the second half of 2024, as the global economic situation is set to improve, with investors looking for stronger outbound activity in 2023. A significant amount of unallocated capital is available from,” the magazine said.

(Source: ET)