Macrotech Developers Secures Bain Capital’s Stake in Industrial Parks for ₹307 Crore
Macrotech Developers, a leading real estate firm in India, has acquired Bain Capital’s stake in three industrial and logistics park entities for ₹307 crore, boosting its annual rental income strategy.
Macrotech DevelopersReal EstateBain CapitalIndustrial ParksLogisticsReal Estate MaharashtraNov 07, 2024
In May 2022, the company announced a partnership with Bain Capital and Ivanhoé Cambridge to establish a platform aimed at investing around USD 1 billion in developing digital infrastructure, including warehousing and industrial parks across India. Earlier this year, in September, Macrotech Developers acquired Ivanhoe Warehousing India Inc’s (Ivanhoe) stake in the digital infrastructure platform entities for ₹239.56 crore. Now, it has successfully given exit to Bain Capital, further consolidating its position in the digital infrastructure space.
In a regulatory filing, Macrotech Developers stated that it has executed Securities Purchase Agreements with India Opportunities Fund SSA Scheme 1 and DSS Opportunities Investment 1 (Bain Capital) to acquire their interest in the digital infrastructure platform entities. These entities include Bellissimo Digital Infrastructure Development Management Pvt Ltd, Palava Induslogic 4 Pvt Ltd, and Bellissimo In City FC Mumbai 1 Pvt Ltd.
Bain Capital held a 30 per cent stake in Bellissimo Digital Infrastructure Development Management Pvt Ltd and a 33.33 per cent stake in each of the other two entities. The acquisition agreement includes a 30 per cent equity stake in Bellissimo Digital Infrastructure Development Management for ₹22 crore, a 33.33 per cent equity stake in Palava Induslogic 4 for ₹189.88 crore, and a 33.33 per cent stake in Bellissimo In City FC Mumbai 1 for ₹95.12 crore. Each acquisition is a cash transaction that does not require additional regulatory approvals, with anticipated completion timelines ranging from 30 days to 180 days.
According to the company, this acquisition is part of its planned strategy for calibrated growth in annuity income through digital infrastructure, specifically industrial and logistics parks under the LILP (Lodha Industrial and Logistics Park) brand.
Macrotech Developers has a strong presence in the housing segment and is increasingly focusing on developing offices, malls, and logistics parks to grow its rental income. The company has delivered around 100 million square feet of real estate and is currently developing more than 110 million square feet under its ongoing and planned portfolio. Macrotech Developers saw a 20 per cent growth in sale bookings to a record ₹14,520 crore during 2023-24, up from ₹12,060 crore in the previous year. The company has set a target of selling properties worth ₹17,500 crore this fiscal year.
Macrotech Developers continues to expand its footprint and strengthen its market position by strategically acquiring stakes in key industrial and logistics park entities. This acquisition with Bain Capital is a significant step towards achieving its ambitious growth targets and enhancing its rental income stream.
Frequently Asked Questions
What is Macrotech Developers?
Macrotech Developers is one of the leading real estate firms in India, known for selling properties under the Lodha brand. It has a significant presence in the housing segment and is expanding into offices, malls, and logistics parks.
Why did Macrotech Developers acquire Bain Capital's stake in industrial parks?
The acquisition is part of Macrotech Developers' strategy to enhance its annual rental income by investing in digital infrastructure, specifically industrial and logistics parks under the LILP brand.
How much did Macrotech Developers pay for Bain Capital's stake?
Macrotech Developers paid ₹307 crore for Bain Capital's stake in three industrial and logistics park entities.
What are the entities involved in the acquisition?
The entities involved in the acquisition are Bellissimo Digital Infrastructure Development Management Pvt Ltd, Palava Induslogic 4 Pvt Ltd, and Bellissimo In City FC Mumbai 1 Pvt Ltd.
What is Macrotech Developers' target for property sales this fiscal year?
Macrotech Developers has set a target of selling properties worth ₹17,500 crore this fiscal year.
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