Global investment giant Warburg Pincus has completed its exit from a joint real estate venture in India, selling its stake for over Rs 600 crore to its partner, the Runwal Group.
This move concludes a strategic partnership formed in 2019 to develop retail-led, mixed-use properties across key Indian cities. The report added that initially, the New York-based institutional investor had invested Rs 250 crore into the venture, aiming to capitalize on India's burgeoning retail market, characterised by a sizeable population and increasing disposable incomes. The partnership marked Warburg Pincus' first foray into India's mall platform sector, following successful retail investments in China, Vietnam, and Indonesia.
According to the report, the joint venture, which saw both Warburg Pincus and Runwal Developers holding equal stakes, undertook two major projects. These included a mixed-use development in PCMC, Pune, and a retail and office project in Mumbai, both currently under construction. Runwal Group's acquisition of Warburg Pincus' stake provides the private equity firm with a complete exit, yielding a significant return on its initial investment. The report added that this transaction underscores the dynamic nature of India's real estate market and the strategic shift by Runwal Group to independently manage and advance these key projects.
The venture had also planned to expand by acquiring operational retail malls, building on the platform's aim to establish large destination malls and smaller community centers anchored by hypermarkets and cinema halls. Warburg Pincus' move to exit the joint venture reflects a broader pattern of strategic adjustments in its global investment portfolio, particularly in the rapidly evolving retail and real estate sectors.
