Warburg Pincus secures Rs 600 crore exit from joint venture with Runwal Group

Warburg Pincus, a New York-based global private equity major, has successfully concluded its exit from a joint realty development platform with Runwal Group, yielding an exit value surpassing Rs 600 crore. Runwal Group has acquired all the stakes, providing a 100% exit for Warburg Pincus. The joint venture, initiated in 2019, aimed at developing retail-led mixed-use properties, particularly shopping malls in key Indian cities with substantial populations and growing disposable incomes. An affiliate of Warburg Pincus had entered this alliance, marking one of India's largest real-estate investment platform transactions in 2019. In this joint venture, Warburg Pincus and Runwal Developers each held a 50% stake. Warburg entered the joint venture with an equity infusion of Rs 250 crore. So, the exit of Rs. 600 crore is a good deal. The platform's vision included the construction of large destination malls, along with smaller hypermarket and cinema hall-anchored community malls. Warburg Pincus has had successful partnerships in the retail mall space in China, Vietnam, and Indonesia, collaborating with entities such as Red Star Macalline, Vincom Retail, and NWP Retail. Notably, this investment represented Warburg Pincus' inaugural mall platform in India. Beyond greenfield developments, the platform had plans to acquire operational retail malls as well. The joint platform had initiated work on two projects—a retail and office project spanning 1.2 million sq ft in Mumbai and a mixed-use project in PCMC, Pune, with a development potential of around 5 million sq ft. Currently under construction, these projects are expected to proceed independently under Runwal Group. Leasing activity in retail real estate has been on the rise, with several prominent malls experiencing robust inquiries for larger spaces from leading brands. This surge in demand is driven by existing occupiers seeking expanded areas.

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Warburg Pincus secures Rs 600 crore exit from joint venture with Runwal Group

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