Singapore’s sovereign wealth fund GIC, through one of its step-down subsidiaries, has agreed to buy a controlling stake in Nirlon Ltd, a listed realty firm. Reco Berry Pvt. Ltd, an arm of GIC (Realty) Pvt. Ltd said on Monday that it has agreed to acquire up to 39.2% stake in Nirlon, and announced an open offer for an additional 28.4% in the company.
The main real estate asset Nirlon owns is the Nirlon Knowledge Park, comprising seven commercial office blocks spread across a total area of 3.3 million sq. ft in the western suburb of Goregaon.
HSBC Securities and Kotak Mahindra were the joint managers to GIC’s offer.
GIC said in a statement that it would be acquiring up to 62.72 million shares from the exisiting promoters and other shareholders of Nirlon at a price not exceeding Rs222 per share, and follow it up with an offer to the public to purchase an additional 25.6 million shares from the public.
If GIC fully acquires the shares it intends to buy from the existing shareholders, the value of the deal works out to Rs1392 crore.