NEW DELHI, INDIA-A joint venture hopes to capitalize on the lack of new office product in the Connaught Place district here, with the launch of a 300,000-square-foot tower project. Red Fort Capital and Parsvnath Developers Ltd. will develop the project on a 5-acre parcel next to the Metropolitan Hotel.
Red Fort, a private equity fund based in the Cayman Islands, has committed $26 million to the project. The tower is being developed near a rail station in accordance with a Delhi Metro Rail Corp. concession agreement.
Raj Inamdar, a principal with the company, says that delivery is expected in about two years, and no leases have yet been signed so far. This isn’t a problem, as the city lacks a new supply pipeline, he says. “We haven’t leased out yet, as absorption risk is low and we anticipate that a large portion of demand shall be generated from existing CBD tenants upgrading from class B and C stock that is prevalent in the area, much of it built in the 1970s and 80s,” he tells GlobeSt.com.
His firm’s global institutional investors include sovereign wealth funds, pension funds and insurance companies. The company primarily focuses in India, with residential, office and mixed-use projects throughout the major markets in the country.
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