Warburg Pincus exits Rs 6 bn JV with Runwal Group in retail development
Real Estate

Warburg Pincus exits Rs 6 bn JV with Runwal Group in retail development

Warburg Pincus, a leading global private equity firm, has successfully divested its stake, valued at over Rs 6 billion, from the joint platform it established with real estate developer Runwal Group for the development of retail-led, mixed-use properties in India. Runwal Group has taken over the entirety of the stake.

The collaboration, initiated in 2019 as one of the largest real estate investment platform transactions in India, aimed to develop shopping malls in key cities with a substantial population and increasing disposable incomes.

Last week, Warburg Pincus concluded its exit from the joint retail development platform, yielding superior returns. An insider stated, "The alliance partner Runwal Group has bought them out to provide them with a 100% exit."

Warburg Pincus had initially infused Rs 2.5 billion in equity capital into the joint venture with Runwal Group, and the exit has resulted in a substantial Rs 6 billion return.

The joint platform had undertaken two projects, including retail and office project spanning 1.2 million sq ft in Mumbai and a mixed-use project with a development potential of approximately 5 million sq ft in PCMC, Pune. Both projects are currently under construction, and with Warburg Pincus' exit, Runwal Group is anticipated to proceed independently with these ventures.

In the joint venture, Warburg Pincus and Runwal Developers each held a 50% stake, with plans to construct large destination malls, as well as smaller hypermarket and cinema hall-anchored community malls.

Despite unanswered email queries to Warburg Pincus and Runwal Group, this successful exit follows Warburg Pincus' track record of fruitful partnerships in the retail mall sector in China, Vietnam, and Indonesia. This venture marked the firm's initial foray into a mall platform in India.

Apart from greenfield developments, the platform had aspirations to acquire operational retail malls. According to recent data from JLL India, the shopping mall stock in the first half of calendar year 2023 reached 89 million sq ft, with an expected supply pipeline of over 38.04 million sq ft of retail development between the second half of this year and 2027, projecting a total of 127 million sq ft by the end of 2027.

Warburg Pincus, a leading global private equity firm, has successfully divested its stake, valued at over Rs 6 billion, from the joint platform it established with real estate developer Runwal Group for the development of retail-led, mixed-use properties in India. Runwal Group has taken over the entirety of the stake. The collaboration, initiated in 2019 as one of the largest real estate investment platform transactions in India, aimed to develop shopping malls in key cities with a substantial population and increasing disposable incomes. Last week, Warburg Pincus concluded its exit from the joint retail development platform, yielding superior returns. An insider stated, The alliance partner Runwal Group has bought them out to provide them with a 100% exit. Warburg Pincus had initially infused Rs 2.5 billion in equity capital into the joint venture with Runwal Group, and the exit has resulted in a substantial Rs 6 billion return. The joint platform had undertaken two projects, including retail and office project spanning 1.2 million sq ft in Mumbai and a mixed-use project with a development potential of approximately 5 million sq ft in PCMC, Pune. Both projects are currently under construction, and with Warburg Pincus' exit, Runwal Group is anticipated to proceed independently with these ventures. In the joint venture, Warburg Pincus and Runwal Developers each held a 50% stake, with plans to construct large destination malls, as well as smaller hypermarket and cinema hall-anchored community malls. Despite unanswered email queries to Warburg Pincus and Runwal Group, this successful exit follows Warburg Pincus' track record of fruitful partnerships in the retail mall sector in China, Vietnam, and Indonesia. This venture marked the firm's initial foray into a mall platform in India. Apart from greenfield developments, the platform had aspirations to acquire operational retail malls. According to recent data from JLL India, the shopping mall stock in the first half of calendar year 2023 reached 89 million sq ft, with an expected supply pipeline of over 38.04 million sq ft of retail development between the second half of this year and 2027, projecting a total of 127 million sq ft by the end of 2027.

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