Sun Network clinched proerty deal In Bangalore

DLF, Embassy & Prestige have divested land
and property assets in the city.

After a long slumber, Bangalore’s real estate market
is ticking with big-bracket property deals. Corporates
appear to be leading this trend of buying land and
property assets from developers, who may be looking
at such divestments to generate more liquidity into the system.

At least three deals in the Bangalore landscape have been
struck or are in advanced stages of closure.

Realty major DLF is understood to have sold a 15-acre patch
of land in Whitefield, one of Bangalore’s IT suburb in the east,
to NetApp India, the arm of US-based data storage equipment
maker NetApp Inc, in a deal valued at Rs 120 crore, said a
source familiar with the transaction.

Prestige Group has, through an SPV, sold 60,000 sq feet prime 
property on Brunton Road in downtown Bangalore to Sun 
Network family for a consideration of Rs 60-crore deal. 

This transaction, which was in the making for some months,
was clinched in recent weeks, with the buyers expected to use
the property as a corporate office for Sun Network.

And, Embassy Group is close to divesting a prime patch just
off Kasturba Road, in close proximity to UB City and Bangalore’s
lungs-Cubbon Park, in favour of HDFC Realty Fund for a sum
of Rs 60-70 crore. HDFC Realty Fund may be roping in a
local developer for constructing a high-rise residential
project of approximately 1 lakh sq feet, on the 36,000 sq ft property,
overlooking the city landmarks. Earlier, Embassy Group,
which has developed some of Bangalore’s landmark office
buildings, had similar plans.

While Prestige Group chairman Irfan Razak confirmed the deal, mails sent
to NetApp India president Vikram Shah and spokespersons of DLF 
and HDFC elicited no response at the time of posting the story.

NetApp India may be looking at a huge office space development in
Whitefield. In earlier media reports in 2008, NetApp had said, it
would hike its head count in India to 2,000 (from 750 at that time)
and would look at investing up to $300 million in the country.

A realty consultant, requesting anonymity, said, that there is a
heightened trend towards buying assets by corporates.
“There is lot of interest. In recent weeks, I have been swamped
with calls,” says L J Hooker chief operating officer Chaitanya
Manohar. But, it is still early days yet and till deal closures
take place, we can only call it increase in interest, says another tracker.

A few days back, it is  reported on Oracle’s talks to
buy one million sqft office space in one of the
upcoming projects of Brigade Enterprises for Rs 500-550 crore.

This deal, if it goes through, will be one of the biggest office
space acquisitions in India recently. Industry trackers said these
transactions signal an upturn in the market sentiments,
with realty firms like Brigade, Embassy and Prestige
cashing in on the early signs of revival.