Hiranandani rejigs partnership firm into a corporate entity
MUMBAI: Real estate developer Hiranandani Group has started restructuring its partnership firm, which holds 4.5 million sq ft of commercial assets in Powai, a suburb of Mumbai, into a corporate entity. The move could be a precursor to listing of a Real Estate Investment Trust holding these office assets, said two persons familiar with the development.
“We are currently only restructuring the partnership firm into a single corporate entity,” said a spokeswoman of Hiranandani Group, but declined to comment on monetizing of these assets through listing of a REIT, or the possibility of a stake sale.
“During the process of Hiranandani Estate, Thane TCS commercial transaction we were approached by a lot of investors – Nomura was appointed to provide us with various scenarios, however the company is not envisioning any transaction on that front,” she said.
Hiranandani Group, a partnership between Hiranandani brothers Niranjan and Surendra, has developed this 4.5 million sq ft office portfolio in Powai over more than a decade. Currently, these offices are fully leased and key tenants here include Tata Consultancy Services, Nomura Group and Deloitte Consulting India.
In Union Budget for 2016-17, finance minister Arun Jaitley removed dividend distribution tax (DDT) on REITs, a move that’s expected to expedite the formation of such entities. Few large realty developers including DLF, K Raheja Corp and Embassy Properties, that have commercial property that can be listed as real estate investment trusts (REITs), have also started consolidating their office assets.