New Delhi, April 30 -- Private equity firm Bain Capital has agreed to pick up a 50% stake in an office-cum-hotel project being constructed by real estate developer Brigade Group in Bengaluru's IT hub of Whitefield.
Bain will invest a total of Rs 302.32 crore ($31.7 million) in Vibrancy Real Estates Pvt Ltd, the company which is developing the project, by subscribing to equity shares and optionally convertible debentures via its locally registered alternative investment fund GSS India Opportunities AIF Scheme I.
Mumbai-listed Brigade Enterprises Ltd, the flagship company of the Brigade Group, will invest Rs 137.43 crore in Vibrancy, mainly through equity shares, according to a stock-exchange filing.
Brigade said the two partners own 50% each of Vibrancy Real Estate after the transaction's completion.
The total cost of the project is around Rs 2,200 crore. It will be spread across an 11-acre land parcel and comprise 2 million sq ft of office space and a five-star hotel.
"This collaboration underscores the growing institutional appetite for high-quality Indian commercial and hospitality real estate and represents a significant investment by Bain Capital into the Indian real estate sector," said Nirupa Shankar, joint managing director, Brigade Group.
She added that the company is constantly looking for opportunities to strengthen its footprint in its key markets. "This resultant partnership demonstrates our strategic focus to aggressively expand our portfolio through institutional collaborations. By leveraging the financial strength of a fund managed by Bain Capital and our deep-rooted development expertise, we are optimizing our capital structure to accelerate high-value developments," she said.
Sarit Chopra, partner at Bain Capital, said Whitefield is one of Bengaluru's most important commercial corridors, "underpinned by strong occupier demand, infrastructure connectivity, and long-term growth".
For Brigade Group, the joint venture strengthens its commercial development portfolio in Bengaluru and aligns with its long-term strategy of partnering with global institutional capital to deliver large-scale, premium assets.
Brigade has delivered projects in Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, Thiruvananthapuram, and GIFT City across residential, office, retail, hospitality and education sectors.
As for Bain Capital, the PE firm has been investing in India's real estate sector, with an approach rooted in asset-backed opportunities and partnership-led investing. In September last year, for instance, it backed Colive, a co-living platform backed by Sattva Group. Late last year, Bain brought back its former executive Utsav Baijal as partner and head of special situations and real estate in India.
Bain's global strategies include private equity, growth and venture capital investing, private credit, capital markets solutions, and real assets. It has 24 offices on four continents with more than 1,900 employees and approximately $225 billion in assets under management.
Published by HT Digital Content Services with permission from VC Circle.