Hines Partners with Goel Ganga to Build Office Park at Rs 1,200 cr

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US-based realty firm Hines has tied up with Goel Ganga Corporation to develop a premium office complex in Pune at an estimated construction cost of Rs 1,200 crore. Hines, a privately-owned global real estate investment firm, entered India in 2006 and has so far invested over USD 400 million equity for development of projects across major cities. "We have signed a binding agreement with Goel Ganga Corporation to develop 2.4 million sq ft of Grade-A office space at Kharadi in Pune. Hines has signed this project on a development management fee model. This is our ninth project in India and also marks our entry into Pune property markets,” Hines India MD and Country Head Amit Diwan stated. The company entered Mumbai in 2017, Bangalore in 2019 and now Pune, he said, adding that the plan is to consolidate and grow deeper in each city. Goel Ganga Corporation has 43 acres of land parcel and out of that 15-20 acres will be used for development of 2.4 million sq ft (square feet). "We have started the design work for this project. The construction work will start from middle of the next year. The rent is Rs 75-90 per sq ft per month in this area for premium office space," Diwan said, adding that leasing is expected to begin by end of next year. Hines would also reach out to its global clients for development of built-to-suit complexes in this project. The 2.4 million sq ft project is expected to get completed over the next four years. About investment, he said the construction cost is estimated at around Rs 1,200 crore. Hines will not make any investment in the project. Goel Ganga Corporation will finance this project through internal accruals and bank loans. The land parcel is located in SBD (Secondary Business District) East sub-market of Pune which has more than 50 per cent stock of total Grade A office in Pune and amongst the lowest vacancy rates in the city. Stating that the total development potential on the 43 acres land is 7 million sq ft, Diwan said the two partners will explore the possibility of expanding this partnership after completion of the 2.4 million sq ft area.