Xander Group has inked a mega deal for an office project in Hyderabad. Hyderabad’s real estate market has been in overdrive over the last few months, spanning both the residential and commercial real estate categories. The office project’s development costs will be bankrolled by Xander and thereafter, the Group will acquire the asset once it is completed. Xander Group will pump in $350 million for developing and acquiring 4.5 million sq. ft. of office space in the project by Phoenix Group.
The project is located at Gachibowli in the financial district of the city which is already one of the most coveted residential cum commercial zones of Hyderabad. The buildings will be delivered in phases between the years 2020 and 2023. Xander Group has previously invested in several residential projects in Hyderabad and is now foraying into the commercial realty segment. The develop-to-core deal is fully in sync with the current strategies of the Group with regard to its office portfolio.
Earlier in 2018, the Group had purchased an office building comprising of roughly 250, 000 sq. ft. at Bangalore’s Embassy Golf Links Business Park for a sum of approximately INR 350 crore. Hyderabad is steadily becoming a preferred market for real estate developers and investors alike in addition to MNCs. The commercial real estate market is thriving here and this is naturally rubbing off positively on the burgeoning residential realty sector as well. Around 33 million sq. ft. of commercial space should be ready between 2018-2021 as per reports and this will scale up office supply by a whopping 60%. Coming to Gachibowli, there is strong demand for residential housing in this market as well, considering the increased employment opportunities and the presence of some of the country’s biggest companies here.
The higher employment opportunities have naturally given rise to increased demand for housing in and around the locality. Some of the top projects here include Lansum Etania, Rajapushpa Atria and Neptune Jubilee 800 to name a few.
Xander Group signs mega property deal in Hyderabad
