Hines to Develop $180M Gurugram Office Project With Indian Partner Pioneer Urban

Hines has partnered with India’s Pioneer Urban to develop a Gurugram office property at a total project cost of INR 15 billion ($180 million), marking the latest addition to the US builder and fund manager’s portfolio in the northern commercial hub.

Houston-based Hines confirmed to Mingtiandi that the project on Gurugram’s Golf Course Extension Road, about 30 kilometres (18.6 miles) southwest of New Delhi, will span 1.25 million square feet (116,129 square metres) of office space with an expected completion date in 2028.

Hines country head Amit Diwan said the office sector continues to be an integral part of the privately held firm’s expansion strategy in India, where the developer has a presence in Delhi, Mumbai, Bangalore, Pune and Ahmedabad.

“With increased tenant demand for amenities and sustainability, Hines is well-positioned to capitalise on the current momentum in India’s commercial real estate market,” Diwan told Mingtiandi.

Northern Exposure

Pioneer Urban did not reply to emailed requests for comment on the deal, which was first reported in India’s Economic Times. The Gurugram-based firm’s projects include Pioneer Park, a 75 acre (30.4 hectare) development comprising a luxury hotel, commercial complex and residences in the satellite city.

The joint project with Hines is part of a larger mixed-use masterplan by Pioneer Urban and will occupy just over 3 acres of land, according to the Economic Times.

The new development is the first for Hines in the office market of Golf Course Extension Road, the bustling locale where the family-controlled firm is also building the Elevate luxury apartments as its first residential project in India.

Other Hines office projects in Gurugram include One Horizon Centre, completed in 2014 as the firm’s first project in India, and Atrium Place, a four-building complex with delivery anticipated in 2025. Both are joint developments with Indian real estate giant DLF.

The US firm also partnered with Shyam Telecom on development of Gurugram’s Skyview Corporate Park, which completed its first phase of 235,000 square feet in 2015.

Outsourcing Surge

Hines is manoeuvring to ride the boom in India’s global capability centres, which are forecast to lease between 45 million and 50 million square feet of office space over the next two years and account for 40 percent of total office demand across the country’s top six cities, according to a report by Colliers.

The centres — which typically are offshore units set up by multinationals to perform outsourced and back-end services — saw their highest leasing activity since 2020 during the second half of 2023, reaching 12.4 million square feet.

“Global capability centres are driving demand for office real estate in India, and Hines is well placed to serve this occupier segment,” Diwan said.

The first quarter began 2024 on a strong note as total office leasing in India’s top six cities reached 13.6 million square feet, up 35 percent compared with the year-earlier period, according to Colliers.

Hines established its India office in 2006 and now has more than $1 billion in assets under management in the world’s most populous nation.