The idea is to see how we can keep on adding newer and newer spaces

01 Dec 2016 CW Team

- Niranjan Hiranandani, Managing Director, Hiranandani Group

Mumbai-based Hiranandani Group made headlines this year for signing what is being touted as the largest commercial property deal in the country, with Canada´s Brookfield Asset Management. The deal, estimated at about $1 billion (Rs 6,700 crore), involves selling Hiranandani´s 4 million sq ft of office and retail space in Powai. Niranjan Hiranandani, Managing Director, Hiranandani Group, shares more on this deal and other developments for the company.

What prompted the signing of this deal and how will it help the company?
Basically, it is not just about any deal, but structuring the company. The idea is to see how we can keep on adding newer and newer spaces. Like Brookfield, we are continuing to offer such agreements to other companies as well. Basically, the deal will still take four to six months to close completely.

We believe the company plans to float a REIT comprising its upcoming projects..
We have been working on REIT for 12 years as a policy. We do believe that this is good for India, and it is good for various companies, including ourselves. It becomes an opportunity to create value for rental spaces. Now, with REIT, there is an exit route for good quality rental properties. With this, the country will function in terms of being able to convert rental assets into a valuation.

Is there any significant move made by the company this year that you would like to share?
A unique business deal this year is that we have signed more than 2 million sq ft with Tata Consultancy Services of rental properties in Thane at Hiranandani Estate. I believe this is the largest deal that has ever taken place in IT for a single transaction with any company. More than 27,000 people will ultimately be employed if it runs to completion.

Is there any development in the real-estate market this year that has reflected positively on the company´s operations and growth?
We have done well in every respect, whether it is the commercial side or the rental side. We have restarted projects in Panvel and Chennai, and are going to complete the first International Financial Centre and the International Stock Exchange for Prime Minister Narendra Modi, which will be inaugurated by him during Vibrant Gujarat in January 2017.

Any expectations from the year 2017?
After demonetisation, there will be a slowdown in the economy. So, growth will come down from 7.5 per cent to 5 per cent. And then, it will take about six months to revamp the economy, following which the market will probably start picking up again after April-May. Although the entire country has been affected by demonetisation, it has impacted the real-estate sector the most (among other sectors). However, the entire slowdown has nothing to do with real-estate; it has to do with the entire economy. But there will certainly be a pickup.