In the largest transaction ever for any detail Active in India, Lake Shore India Advisory, backed by the Abu Dhabi Investment Authority, has acquired Viviana Mall in Thane from Singapore sovereign wealth fund GIC and property developer Ashwin Sheth Group for over Rs 1,900 crore.
The acquisition of the operational commercial building is also the first largest real estate transaction of this year in the country. In June, Lake Shore India Advisory was in advanced discussions to acquire this shopping center of nearly 2 million square feet.
The deal is significant as it indicates continued global investor interest in Indian mall development and confidence that retail consumption will rebound once the Covid-19 pandemic is over.
Viviana Mall occupies 13 acres of land on Thane’s Pokhran Road and has a total leasable area of 1.7 million square feet. It houses one of the largest multiplexes with 14 screens, including an Imax experience.
“Lake Shore India’s Salsette Developers subsidiary is acquiring the property from Sheth Developers and Realtors (India) which owns and operates Viviana Malls. Salsette Developers is financing the acquisition with equity and debt, including non-convertible debentures (NCDs) “said one of the people quoted above.
Salsette Developers has raised Rs 450 crore by issuing MNTs, data from NSDI on the Debt Trade Benchmark for Foreign Portfolio Investors (REITs) investments in such instruments showed.
“As a company striving to engage and generate value for our investors, we are constantly seeking opportunities that would drive both excellence and returns for investors and clients. However, we categorically deny this. current speculation coming from the markets. We would be happy to announce any such developments in the near future,” said a spokesperson for Viviana Mall.
The mall is so far jointly owned by the Ashwin Sheth Group with a 51% stake and the balance with GIC. Singapore’s sovereign wealth fund had acquired a stake in this commercial property from the Sheth Group in early 2016 at a valuation of Rs 900 crore. The two entities have now sold all of their respective stakes to Lakeshore India.
Institutional investors, including Blackstone Group, Warburg Pincus and the Canada Pension Plan Investment Board (CPPIB), through their joint platforms or Indian partners, except Lake Shore, had expressed interest in the property.