ADIA-backed Lake Shore acquires Viviana Mall from Ashwin Sheth, GIC for Rs 1,900 crore

February 11, 2022

In the largest ever transaction for any retail asset in India, the Abu Dhabi Investment Authority-backed Lake Shore India Advisory has acquired Viviana Mall in Thane from Singapore’s sovereign wealth fund GIC and realty developer Ashwin Sheth Group for over Rs 1,900 crore, said people with direct knowledge of the development.

The acquisition of the operational retail property is also this year’s first single-largest real estate transaction in the country.

The acquisition of the operational retail property is also this year’s first single-largest real estate transaction in the country.

In June, ET was the first to report that Lake Shore India Advisory was in advanced discussions to acquire this nearly 2-million-sq-ft retail mall.

The deal assumes significance as it indicates global investors’ unabated interest in Indian mall developments and confidence that retail consumption will rebound once the Covid-19 pandemic is over.

Viviana Mall occupies a 13-acre plot of land on Thane's Pokhran Road and has a total lease area of 1.7 million square feet. It houses one of the largest multiplexes with 14 screens, including an Imax experience.

"Lake Shore India’s subsidiary Salsette Developers is acquiring the property from Sheth Developers & Realtors (India) that owns and operates Viviana Malls. Salsette Developers is funding the acquisition with equity and debt, including non-convertible debentures (NCDs)," said one of the people mentioned above.

Salsette Developers raised Rs 450 crore by issuing NCDs on Tuesday, showed the NSDL’s data on debt trade repository for foreign portfolio investors’ (FPI) investment in such instruments.

ET’s email queries to Lake Shore India, GIC remained unanswered. Transaction advisor JLL India declined to comment for the story.

"As a corporate striving to engage and drive value for our investors, we constantly look at opportunities that would drive both investor and customer excellence and returns. However, we downright deny this current speculation coming from the markets. We would be glad to announce any such developments in the coming future," said a Viviana Mall spokesperson.

The mall is so far jointly owned by the Ashwin Sheth Group with a 51% stake and the balance with GIC. The Singapore sovereign wealth fund had picked up a stake in this retail property from Sheth Group in early 2016 at a valuation of Rs 900 crore. Both entities have now sold their entire respective stakes to Lakeshore India.

ET had reported earlier that institutional investors including Blackstone Group, Warburg Pincus, and Canada Pension Plan Investment Board (CPPIB), through their joint platforms or Indian partners, apart from Lake Shore, had shown interest in picking up the property.

Given the increased residential development in and around Thane, the city has also emerged as a major hub for retail consumption, prompting a rise in interest among major retail property developers.

Private equity major Xander Group’s retail arm, Virtuous Retail South Asia (VRSA), has acquired a nearly 20-acre prime land parcel in Thane from textile major Raymond for $100 million, or over Rs 710 crore. It plans to spend an extra $240 million, or more than Rs 1,700 crore, to build the site, making its total investment more than Rs 2,400 crore.

VRSA is planning to build a 3.7 million sq ft mixed-use city centre project anchored by a 2.4 million sq ft VR retail flagship development. The proposed 2.4-million-sq-ft VR flagship retail mall will offer retail, dining, lifestyle, and entertainment options.

Ashwin Sheth Group is also looking to set up a strategic platform to develop and operate retail malls across the country. In December, the developer entered into a joint venture with Nagpur-based Sethi Group to develop a 1 million sq ft mall, Viviana Nagpur, in the city’s south western region near Pratap Nagar.

Recently, GIC too entered into a strategic partnership with The Phoenix Mills to set up a joint venture to develop, own, and operate retail-led mixed-use developments in India.

In 2019, Lake Shore bought a majority stake in a retail mall project in Hyderabad from the city-based Phoenix Group for around Rs 1,000 crore, inclusive of construction funding.

Source : economictimes.indiatimes.com

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