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CapitaLand Singapore to forge JVs with Pantaloon, commits USD 75 mn

By Staff
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Mumbai, Apr 19 (UNI) Pantaloon Retail India Ltd has entered in an agreement with CapitaLand Ltd, Singapore to set up a 50:50 joint venture retail mall management company to manage retail mall properties in India.

Informing the BSE here today, the company said the agreement also envisages to co sponsor Real Estate Income funds or REITs(Real Estate Investment Trusts), as and when regulations permit, where CapitaLand shall invest upto 20 to 40 per cent of the fund size.

Apart from mall management company, both the companies have agreed to establish a 50:50 JV fund management company to manage the income funds or REITs. CapitaLand has committed an investment of USD 75 million in the Horizon Realty Fund sponsored by Pantaloon Retail.

CapitaLand based in Singapore, is a leading player within the retail real estate space, specifically in Asia. They have over 5 billion in assets under management, are a pioneer in the Asian REIT market and a large mall manager. The market capitalisation of Capitaland is approx USD 8.5 billion. They are one of the largest mall developers in China where they have developed over 40 malls and also have a strategic relationship with Szitic and Walmart.

The Horizon Realty Fund is an international fund managed by Kshitij Investment Advisory Co. Ltd (KIACL), the asset management arm of Pantaloon Retail (India) Ltd.

The joint venture retail management company will manage a portfolio of over 50 quality retail malls located in metros, mini metros and tier 2 towns in India within the next two to three years.

These malls are spread across 30 cities and 14 states pan-India with an estimated total retail GFA of over 19 million sq ft and an estimated total project cost of USD 330 million.

Commenting on the development, Pantaloon Retail (India) Managing Director Kishore Biyani said, '' Through this alliance, we intend to maintain our leadership position in India's fast growing retail real estate market.'' Kshitij Investment Advisory Company CEO Shishir Baijal said, ''This alliance further augments our position as India's leading retail focused real estate fund by leveraging CapitaLand's knowledge in managing our retail portfolio.'' The new mall management company will manage this portfolio of malls under the brand, 'Kshitij Retail Destinations', he said.

CapitaLand Group President&CEO Liew Mun Leong said, '' Pantaloon's in-depth understanding of the Indian retail market, strong network of local retailers and expertise in fund management is well complemented by CapitaLand's track record in retail development and asset management. These joint ventures will allow us to create and establish very quickly our retail and fund management platform in India.'' UNI SN PP SKB2001

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