GIC Real Estate, the real estate investment arm of the Government of Singapore Investment Corporation, is crafting an ambitious strategy for India. According to insights from industry sources, this firm, which oversees a multi-billion dollar portfolio encompassing nearly 200 investments across over 30 countries, is strategically honing in on the growth prospects inherent in the Indian real estate market.
Reports indicate that GIC is on the verge of finalizing two private equity deals in the current quarter. Moreover, the company aims to intensify its focus on the hospitality sector in the near future. As part of this initiative, Reco Hotel, a GIC Real Estate affiliate, has partnered with Host Hotels & Resorts from the United States to scout for investment opportunities in both Asia and Australia.
The duo has agreed to commit up to $600 million in equity towards the joint venture, and with the expected leverage, this arrangement could yield an investment capacity ranging from $1.5 billion to $2 billion. A representative from GIC Real Estate commented on the escalating investment avenues available in both emerging and developed markets, highlighting their intent to build a robust portfolio centered around hospitality-related assets in Asia.
Data from Venture Intelligence, a reputable venture capital research firm in India, indicates that approximately $300 million was invested in the hospitality sector over the past year, marking a doubling of investment from the previous year. Notably, various Indian hospitality entities such as Leela Hotels & Resorts and Lemon Tree have previously attracted private equity from funds like IDFC and Kotak. Additionally, Royal Orchid Hotels, another prominent player based in Bangalore, is anticipated to finalize a private equity deal worth around $600 crores in this quarter.