Completed in 2014, One Horizon Center provides over 800,000 square feet of offices
Global real state developer Hines plans to sell its 50 percent stake in its first project in India, a premium commercial tower outside of New Delhi, in a deal estimated to fetch around 11.8 billion rupees ($175 million).
A Hines spokesperson confirmed to Mingtiandi that the company has decided to sell the stake in One Horizon Center, which Hines India Ltd co-owns with domestic real estate giant DLF Ltd in the Delhi-area boomtown of Gurgaon.
Completed in 2014, the 25-storey office tower with ground-floor retail space houses multinationals, including the headquarters of Hines India, within a prime residential and office neighbourhood.
The LEED Platinum-certified project forms part of a 2.5 million square foot (232,000 square metre) commercial complex including retail, entertainment and landscaped public spaces, including the neighbouring Two Horizon Center which is fully owned by India’s largest listed real estate developer DLF.
Hines Kicks off Marketing Process
“We have started the process of short listing consultants and a formal strategy will emerge as a result of this exercise,” the Hines representative commented. “We believe that it is a good time to be considering a sale as there is significant demand from investors and such sale has always been part of our investment fund strategy. We believe that the asset will garner a lot of interest from the investor community due to its quality and uniqueness.”
Amit Diwan took over as country head of Hines India in April
The spokesperson added that the final sales price is anticipated to be around 29,000 rupees per square foot. Based on the tower’s floor area of 814,169 square feet, this preliminary estimate would imply a total price tag of around 11.8 billion rupees ($175 million) for Hines’ stake in the project.
Designed by Robert AM Stern Architects, One Horizon Center overlooks the Arnold Palmer-designed DLF Golf & Country Club on Golf Course Road. The project hosts offices for Apple, Coca-Cola, and Oracle as well as India-based airline Vistara. Business news portal Livemint first reported on the planned sale.
DLF is reported to have sold about 48,000 square feet of office space in Two Horizon Center for a total of 1.5 billion rupees, equating to 31,250 rupees per square foot (including a basic selling price of 25,000 rupees per square foot of office space, plus additional value for parking and infrastructure).
Gurgaon is a burgeoning financial and industrial hub with a population of over 1.5 million, about 32 kilometres from the Indian capital New Delhi.
US Builder Has Big Plans in India
“Having done the hard work over the past decade, we see our residential and commercial businesses achieving tremendous growth in the coming few years,” the Hines representative noted. “We plan to undertake development of new projects in prime locations across India.”
Houston-based Hines created a $300 million private equity fund in 2007 to invest in real estate developments in India, and started construction on One Horizon Center with DLF in 2012. The developer, which has a presence in 24 countries, currently has over $672 million of assets under management in India, including Skyview Corporate Park, another office development in Gurgaon.
Hines in February sold a 240,000 square foot office building within the first phase of Skyview Corporate Park to a fund managed by conglomerate Indiabulls Group along with co-investor InterGlobe Real Estate Ventures. The transaction was estimated to be valued at around $31 million according to reports.
Amit Diwan took over as managing director and country head of Hines’ India operations in April, following the resignation of the previous managing director Yash Gupta last October.
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