The Virtuous Retail, firm backed by Xander is in the advanced level of talks with Tata Realty and Infrastructure (TRIL) in order to acquire two mall projects at a deal of approximately Rs. 700 crore.
The Tata Realty and Infrastructure [TRIL] will walk out from two mall properties that have a total area of 1.15 million square feet and are located in Amritsar and Nagpur. At present, the company owns 90% stake in these projects.
The sources said that the deal is expected to be finalized this month. The mall in Amritsar is functional and the mall in Nagpur will hopefully get operational in next two months.
A successful deal between the companies will pave way for the Tata Realty and Infrastructure to walk out of its maiden fund Tata Realty Initiatives Fund I, who invested in these projects. The fund had $750 million as corpus.
The sources also said that the Virtuous Retail is in the advance stages of finalizing the deal. The company is looking at expanding its retail portfolio via the organic and inorganic routes in India. This is a smart move as a part of strategy for business expansion in the retail development via right acquisitions.
In October 2018, the Xander Investment Management, the private equity real estate arm of the leading global investment firm Xander group announced investment of Rs. 2,550 crore in office projects in Hyderabad. The group signed the deal with Hyderabad-based Phoenix Group to develop 4.5 million sq. ft. office space in Hyderabad.