Global investors such as Canadian pension fund CPPIB, Singaporean sovereign fund GIC, another Singapore firm Mapletree, and others, have bid for Waverock, a 2.4 mn sq ft office complex in Hyderabad. The complex is owned by a joint venture (JV) of Shapoorji Pallonji Investment Advisors (SPIA), the real estate investment arm of Shapoorji Pallonji group, and Allianz Real Estate, an arm of German insurer Allianz Group.
Though the JV partners tried to sell the asset early this year, it did not go through owing to a mismatch in expectations of the seller and buyer, sources said. “Now, they are expecting a cap rate of 7.5%, one of the sources said.
SPREF II, the Allianz-Shapoorji joint venture, bought the property in 2019 from a JV of Singapore sovereign wealth fund GIC and US-based developer Tishman Speyer for $250 million (about Rs 1,780 crore).
Completed in 2017, Waverock comprises four office towers with a total leasable area of 2.4 million sq ft. The building complex is located in the Gachibowli financial district, a high-growth IT hub of the city. It was leased to marquee tenants such as Apple, Tata Consultancy Services and Accenture.
In 2017, Allianz Group partnered with Shapoorji Pallonji Group to set up a $500-million real estate fund — SPREF II — which would invest in commercial office properties in the country. In 2018, a JV between Shapoorji Pallonji and CPPIB sold SP Infocity in Chennai to Mapletree for Rs 2,400 crore.
