Hitech CyberSpazio, owned by real estate builder Aparna Infra Housing of Hyderabad, has bought two office buildings in Madhapur with an total area of around 4.3 lakh sq. ft, in one of the largest ready office transactions in recent times.
The transactions are valued at Rs 247.5 crore and will help Aparna expand its operations in the office space.
The transaction assumes significance as Hyderabad has not witnessed a large independent commercial building sale on an outright basis for a long time.
“The deal was concluded and registered a few days ago. The property is located in the tech hub and there are very few ready office deals concluded recently,” said one of the persons mentioned above.
The buildings were bought from ENN ENN Corp by Aparna Group.
The first asset, a 2.52 lakh sq ft, ground plus five-storey property was built by L&T Infocity in 2005 and sold to ENN ENN Corp in 2011.
The second asset leased to HSBC is spread over 1.81 lakh sq ft in Madhapur, Hitec City Layout.
The property is leased to HSBC Electronic Data Processing India, rented at Rs 64.5 per sq ft and Rs 43.7 per sq ft, mentioned in a recent data by Propstack.
Aparna Construction confirmed the transaction but did not share details.
Ready office deals have seen very few transactions recently even though institutional funds continue to buy out office portfolios to expand operations in the country.
In July, Kolkata-based KCT Group bought a prime commercial building owned by the Hong Kong and Shanghai Banking Corporation (HSBC) at Horniman Circle in South Mumbai’s Fort locality for over Rs 83 crore.
Bounced back strongly and recorded net absorption of 1.08 million sq ft backed by good pre-commitments in new completion as well as strong demand from BFSI and IT/ITES sectors.
Like Delhi NCR, Hyderabad’s net absorption surpassed Q1 2021 levels by 38% indicating a strong market recovery.
Taking cues from 2020, the last quarter of the year is expected to witness increased momentum in the office space.
However, net office absorption across seven major cities in 2021 is unlikely to touch net absorption recorded in the previous year (25.6 million sq ft) with about 15 million sq ft being recorded in the first three quarters of 2021.