In the largest single deal in the retail real estate sector in India, Dutch pension fund asset manager APG Asset Management (“APG”) and Virtuous Retail (“VR”), sponsored by leading emerging markets investment firm The Xander Group Inc. (“Xander”), have partnered to form a joint venture that has acquired an initial portfolio of 3 retail assets from a Xander sponsored fund in a transaction valued at Rs 2,000 crores (US$ 300 mn).
APG has invested 77% of the equity for a majority shareholding in the joint venture. Xander has invested the balance 23%. The two partners will have equal representation on the board of the new company which will be chaired by Sid Yog, the founder of Virtuous Retail. Simultaneously, APG and Xander have committed an additional US$ 150 million as equity capital giving the new company investment capacity of US$ 300 million that will be used to expand the portfolio through new acquisitions and greenfield development.