The Tata group has tied up with global private equity investor Xander for developing real estate properties for its various retail ventures, indicating that the country’s second largest business house wants to expand its presence in one of the fastest growing business spaces in India.
Tata group company Trent said as per the agreement the Xander group will invest in the development of an institutional retail real estate portfolio in the country. Trent will have anchor tenancy rights and manage the portfolio with Xander, the Tata group company said without indicating the size of the investment. Xander Master Fund LLC, a real estate fund, invests in the Indian real estate market.
“The arrangement will be of considerable help to the company in its growth plans in the retail sector, including in the current formats like Westside, Landmark and Star India Bazaar,” Trent said in a statement. Its shares rose 1% to Rs 707.50 on the BSE on Monday.
Trent’s announcement came even as the Mumbai-based Future group, which controls retail company Pantaloon Retail, has floated two real estate funds specifically for the retail sector. In 2005, the company bought out real estate developer Satnam Developers.
Xander Real Estate Partners, part of the Xander group, recently bought a 20% stake in a joint venture between Reliance Industries and the Maker Group, to develop commercial, residential and retail real estate in Bandra Kurla Complex in Mumbai. The 20% stake was reportedly valued at over $100 million.
Trent, formerly known as Lakme, was promoted by Simone Tata and was renamed after its amalgamation with Littlewoods International (India) in 1998. The company entered retailing after selling its cosmetics business to Hindustan Lever in 1997.
Trent owns the Westside chain of retail outlets in Mumbai, Bangalore, Hyderabad, Chennai, Pune, New Delhi and Kolkata. It opened its first hyper-market in Ahmedabad under the name Star India Bazaar in 2004. Last year, it acquired 79% in Landmark, a partnership firm engaged primarily in retailing books and music.
Source : Economic Times