Reports suggest that Goldman Sachs (NYSE: GS) is making a real estate investment of $75 million in Bengaluru (India) based Ozone Group. The investment comes at a time when most of the NBFC’s are turning a blind eye to the sector owing to various problems.
An Investment Made via NBFC Arm
Goldman Sachs is making the investment in Ozone Techno Park which is situated at Old Mahabalipuram Road, Chennai with a capacity to lease approximately 1 million sq ft of land spread across a 10-floor complex.
The investment will be made by its NBFC arm Goldman Sachs (India) Finance Pvt Ltd and Goldman Sachs Investments (Mauritius) Ltd. The technopark is a leased commercial project which houses some of the top companies like HCL, CTS, Rainbird Healthcare, and Firstsource Solutions.
“It’s a safe bet given that the project is fully leased to blue chip global clients and offers a steady stream of rental yield. The deal will be completed in two tranches,” said one of the persons familiar with the deal.
The money will be used by the Ozone Group to pay its debt to Urban Infrastructure Venture Capital. Global Institutional investors seem to have a liking when it comes to Commercial Assets, Goldman Sachs is not the only institution. Other investors like Blackstone Group, Sovereign Funds, Pension Funds, and Investment Funds have been investing aggressively in Indian real estate sector.
Change in Government Policy is Positive
The recent change in Government Policy has boosted investor sentiment, and experts are of the view that more investments will flow into the country.
Commercial real estate saw investments of upto $8.2 billion in the last four years which, is a fivefold jump in comparison to $1.6 billion in the last five years starting 2009. The company is developing 15 million sq ft at this moment while, 30 million sq ft is work in progress across various states like Bangalore, Chennai, Mumbai, and Goa.
