Hiranandani’s Powai retail space to be acquired for $1 billion

Hiranandani’s Powai retail space to be acquired for $1 billion

Developed over a decade, the Hiranandani Group, a partnership between brothers Niranjan and Surendra Hiranandani, which owns 4.5 million square feet of office and retail space in Powai, a suburb of Mumbai, will soon be acquired by Canada-based Brookfield Asset Management. This is said to be Mumbai’s largest property transaction in the commercial space which is worth $1 billion or Rs. 6700 crore.

“The process to restructure Hiranandani brothers’ partnership firm is already at an advanced stage and this will clear the way for the transaction. The deal is scheduled to conclude very soon,” a source familiar with the development said.

The developer group which holds the Powai assets is presently a corporate entity and this move may be a precursor to either listing of a Real Estate Investment Trust that would hold the office assets or stake sale.

Hiranandani’s Powai offices are fully leased to giants like Tata Consultancy Services, Nomura Group and Deloitte Consulting India.

Brookfield Asset Management is a global alternative asset manager which has been very active in India off late. The company acquired 100% stake in four special economic zones owned by Unitech Corporate Parks (UCP) and 60% stake in its two other assets in the country for Rs 3,500 crore in 2014.