Xander Group, a private equity firm, is on the lookout for investors to fund its retail realty asset platform Virtuous Retail, the largest institutionally-owned private retail realty development and operating platform in India within the next three-six months.
This move is a precursor to a public listing of the platform in Singapore or India in the next 12-18 months. Xander's retail dedicated fund, has invested around Rs 2,000 crore into this venture, and slated to expire in three years in May 2018.
"The efforts to raise and infuse equity into the retail platform is aimed at future growth prospects and establishing a valuation of the platform as eventually this will lead to a public listing," said a spokesperson.
Being currently present in markets like Bengaluru, Pune, Chennai and Surat, the fund is also looking to expand into the other leading markets like Mumbai, NCR and Kolkata simultaneously.
Rohit George, MD, Xander Advisors, said that the fund is looking to raise equity through this platform and has appointed Morgan Stanley for the job.
"Virtuous Retail is well capitalised and has a strong balance sheet with almost no debt at the moment. The current development projects are fully funded and the completed assets of around 2 million sq ft are contributing to a strong income," George stated.
In its existing portfolio, Virtuous Retail has around 5 million sq ft of gross leasable area across five assets. Of these properties, around 2 million sq ft has been completed and is currently operational in Surat and Pune and 3 million sq ft is under construction. The Xander Group has committed $600 million in equity to this retail platform.