Prestige Estates approved a preferential issue of GIC investment worth Rs 430 crore.

Singapore’s GIC Sovereign Fund invests about Rs 430 crore in Prestige Estates by way of a preferential issue of equity shares. In a regulatory filing, Prestige said that the GIC investment company Gamnat Pte will procure the company’s 13.4 million Bengaluru equity shares at Rs 323.22 per share.

The Gamnat preferential issue has already been accepted by Prestige Estates.

Last week, GIC concluded its first exit from any of its Indian properties with the sale of a stake in the IT Special Economic Zone WaveRock property in Hyderabad for around Rs 1,800 crore to Allianz Group’s joint venture entity with Shapoorji Pallonji Group. In 2015, GIC acquired a 50% stake in Tishman Speyer’s WaveRock at an Rs 1,000 crore company valuation.

GIC has been actively investing in the Indian real estate sector and has expanded its market activity over the past few years. For instance, last year, Gamnat invested Rs 1,000 crore in the Godrej Group’s real estate arm to finance its growth plans.

In the Indian real estate sector, investment flows are rising steadily as business conditions undergo reforms by the government continue to change, with both foreign and domestic institutional investors pumping in more funds.

In the past few years, major institutional investors such as the Blackstone Group, Brookfield Asset Management, GIC, Goldman Sachs, Canada Pension Plan Investment Board and the Qatar Investment Authority have made large investments in Indian properties.

Further funds also include conceptual investment and opportunities for collaborations in the context of recent policy changes. While these companies have previously shown a strong interest in investing in commercial real estate in the sense of opening a path of monetization through Real Estate Investment Trusts, they are growing their investment portfolios.