New Delhi, May 20 -- Alta Capital, the real estate operating partner of Singapore-based Hillhouse Investments' real estate arm Rava Partners, has clinched a deal to acquire a clutch of warehousing assets in the country, two people close to the development told VCCircle.
VCCircle had reported last August that Alta Capital is likely to acquire a portfolio of warehousing assets from Singapore-headquartered investment firm Xander Advisors.
Xander Group had put around 3.5 million square feet of its warehousing portfolio on the block across Chennai, Mumbai and Kolkata. Its portfolio comprises five assets-four assets are operational, one is yet to be developed.
Alta Capital has now signed a definitive agreement with Xander and only asset transfer is pending, one of the people mentioned above said. "The deal has been in the process for quite some time now. It is signed now between both the parties and only last bit of the process is left," he said.
The second person said that while Xander was exploring a deal for its whole platform, Alta Capital has only bought a part of the portfolio. "Two assets have been left aside and rest of them have been acquired," he said.
VCCircle could not immediately ascertain which assets Alta Capital has taken under its fold and which ones have not made the cut.
The gross asset value (GAV) of all the five properties is roughly Rs 2,000 crore (around $206 million) and the deal is likely to be sealed at a capitalisation rate of sub 7 per cent. The capitalisation rate indicates the rate of return likely to be generated on a real estate investment.
The deal value will adjust basis the portfolio size exchanged between the parties.
Real estate consultancy firm JLL is the advisor on the transaction.
Separate emails written to the spokespersons for Alta Capital, Xander Advisors and JLL did not elicit any response till the time of filing this story.
As per the website of Alta Capital, its logistics and warehousing platform Logicap has a leasable portfolio of 12 million sq ft through Pragati Warehousing and EcoBox Industrial Parks. In late 2024, it acquired 2.5 million sq ft of assets in Chennai and Pune from IndoSpace.
The company also has presence into education infrastructure through Elevate, managed offices through Table Space, and life sciences real estate through NineHills.
Warehousing as a sector has been on an uptrend, backed by strong leasing momentum and capital flow in the sector. Recently, Mapletree, through one of its trusts, acquired an asset in Bhiwandi from Morgan Stanley for Rs 390 crore.
Brookfield is in talks with ESR to acquire roughly 10 million sq ft that the Singaporean asset owner has under partnership with Germany's Allianz.
Published by HT Digital Content Services with permission from VC Circle.