Hines & DNR Group, office project on a 4-acre land parcel in Bengaluru, Capital Markets, India
01 THE CHALLENGE
DNR Group, a well-established name in Residential development in Bengaluru, wanted to enter into commercial office space development & create a new benchmark in the industry. The company owns a four-acre commercial land parcel in Yeshwantpur, a rapidly transforming corridor in Bengaluru and an emerging alternative to its commercial business district (CBD). The project has a development potential of 1 MSF built-up area.
DNR Group wants to develop a marquee asset to create a landmark in the market and compete with the well-established commercial developers. The group had never developed large scale commercial projects which was a major challenge to achieve the above objective. Also, they wanted to retain the entire project and wanted to participate in the entire development cycle and hence all convention forms of partnerships (JDA or JV) were ruled out.
02 THE SOLUTION
Cushman & Wakefield’s Capital Markets team in India understood the group’s requirement and suggested a Development Management partnership with US based realty firm Hines. Hines was already exploring the commercial segment in Bengaluru. Given the objective of the group and Hines’s intent to enter Bengaluru, the partnership was a perfect synergy.
03 THE RESULT
The Cushman & Wakefield team acted as an advisor and brought both the partners together with a common goal of building a marquee project in Yeshwanthpur, Bengaluru. In this partnership, Hines brings its world-class development experience, including design, construction, leasing and asset management. DNR Group complements the Hines group and bring their deep local expertise with respect to market knowledge.
The project with 1 MSF of built-up area, which is currently in a design stage, will have a 20-storey office tower with accompanying amenity spaces. DM Agreement was signed in May 2020. The construction work for the project is scheduled to start in Q1 2021, and complete in 2023.
MEET THE TEAM
Cushman & Wakefield Japan has introduced Matterport’s 3D virtualization tool to provide first-class property assessment and enhanced property marketing services. The use of this virtualization tool transpired from a global agreement that Cushman & Wakefield signed with Matterport last year, which enabled the company to offer clients a turnkey solution to scan commercial properties in 3D across its footprint.
Yuko Okayasu • 09/09/2021
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