Tata Group promoted Trent Ltd on Monday said that it has entered into an agreement with private equity firm The Xander Group Inc for an institutional retail real estate fund in partnership with Indian developers.
“Xander, through one or more of its fund vehicles, will invest in the development of an institutional retail real estate portfolio in India in partnership with high quality Indian developers. Trent will have anchor tenancy rights and obligations and will participate with Xander in the management of such portfolio and its growth,” Trent said in a statement to the Bombay Stock Exchange (BSE).
The arrangement will help Trent in its growth plans in the retail sector, including through its current formats like Westside,
Landmark and Star India Bazaar, the statement added.
The statement, however, did not disclose financial details.
The Trent stock rose 1.07% on the BSE on Monday to close at Rs 707.50.
Another large Indian retailer, the Future Group, which owns Pantaloon Retail India Ltd, has floated two retail real estate funds.
Trent made its beginning in 1998 with Westside, a lifestyle retail chain, which was followed up in 2004 with Star India Bazaar, a hypermarket with a large assortment of products at the lowest prices.
In 2005, it acquired Landmark, India's largest book and music retailer. Trent has also agreed to anchor 12 malls set up by DLF Universal Ltd across the country, at its Westside, Landmark and Star India Bazaar outlets. This amounts to about 27 locations, totalling to about a million square feet of space.
Trent retails garments and household accessories for men, women and children, cosmetics and perfumes at Westside, food, beverages, health and beauty products, vegetables, fruits, dairy products, consumer electronics and household items at Star India Bazaar and books, music and stationery at Landmark.
Westside has 25 outlets across 17 cities in India offering a variety of designs and styles in garments, footwear and accessories, as table linens, artifacts, home accessories and furnishings.
Source : Financial Express