NEW DELHI: US-based realty firm Hines has tied up with Goel Ganga Corporation to develop a premium office complex in Pune at an estimated construction cost of Rs 1,200 crore.

Hines, a privately-owned global real estate investment firm, entered India in 2006 and has so far invested over USD 400 million equity for development of projects across major cities.

“We have signed a binding agreement with Goel Ganga Corporation to develop 2.4 million sq ft of Grade-A office space at Kharadi in Pune,” Hines India MD and Country Head Amit Diwan told .

Hines has signed this project on a development management fee model, he said.

“This is our ninth project in India and also marks our entry into Pune property markets,” Diwan said.

The company entered Mumbai in 2017, Bangalore in 2019 and now Pune, he said, adding that the plan is to consolidate and grow deeper in each city.

Goel Ganga Corporation has 43 acres of land parcel and out of that 15-20 acres will be used for development of 2.4 million sq ft (square feet).

“We have started the design work for this project. The construction work will start from middle of the next year,” Diwan said, adding that leasing is expected to begin by end of next year.

Hines would also reach out to its global clients for development of built-to-suit complexes in this project.

According to him, the 2.4 million sq ft project is expected to get completed over the next four years.

About investment, he said the construction cost is estimated at around Rs 1,200 crore.

Hines will not make any investment in the project. Goel Ganga Corporation will finance this project through internal accruals and bank loans.

Diwan said the rent is Rs 75-90 per sq ft per month in this area for premium office space.

The land parcel is located in SBD (Secondary Business District) East sub-market of Pune which has more than 50 per cent stock of total Grade A office in Pune and amongst the lowest vacancy rates in the city.

Stating that the total development potential on the 43 acres land is 7 million sq ft, Diwan said the two partners will explore the possibility of expanding this partnership after completion of the 2.4 million sq ft area.

In India, Hines has completed two prime office complex projects in Gurugram — ‘One Horizon Centre‘ in a joint venture with realty major DLF and ‘Skyview Corporate Park’ in partnership with Shyam Telecom.

The US-based firm has exited both these projects by selling its stakes.

At present, Hines has three housing projects under construction. It has partnered with Tata Housing to develop 750 flats in ‘Serein’ housing project in Mumbai.

Another 1,050 apartments are under construction in ‘Parkwest’ housing project in Bengaluru, which is being developed in partnership with Shapoorji and Pallonji Real Estate.

Hines has also formed a joint venture with Conscient Infrastructure to develop a luxury housing project ‘Elevate’ in Gurugram with an estimated cost of Rs 1,500 crore.

These three housing projects would be completed by 2023-24.

In March last year, Hines acquired 33 per cent stake in DLF’s upcoming commercial project ‘Atrium Place’ in Gurugram in a deal size estimated at around Rs 650 crore.

DLF and Hines would jointly develop a prime commercial project on 11.76 acre land parcel in Gurugram that was bought for nearly Rs 1,500 crore through e-auction conducted by the Haryana government in February 2018.

Last year, Hines partnered Bengaluru-based DNR group to develop an office complex in the IT city with 0.7 million sq ft of built-up area.

Hines, founded in 1957, has a presence in 240 cities in 27 countries. It oversees a portfolio of assets under management valued at about USD 160.9 billion.

Hines has developed, redeveloped or acquired about 1,450 properties, totaling over 485 million sq ft. The firm has more than 180 developments currently underway around the world.

Goel Ganga Corporation, promoted by its Chairman Emeritus Jaiprakash ji Goel, is a leading real estate developer of Pune and has built and delivered 30 million sq ft over the past four decades.

The company, headed by Amit Goel who is Chairman & Managing Director, is constructing 25 million sq ft of residential and commercial projects. Another 20 million sq ft area will be launched by 2023.

The company has presence in Bengaluru and Nagpur as well.

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