Singapore's GIC on track to buy Provenance Land stake

Four Seasons Private Residences Mumbai, India. Photo credit: Four Seasons Hotels and Resorts (The Government of Singapore's sovereign wealth fund GIC will acquire up to a 50-percent stake in Provenance Land.)

The Government of Singapore's sovereign wealth fund GIC is in the final stages of a deal to acquire up to a 50-percent stake in Provenance Land, which owns the Four Seasons Hotel Mumbai in India.

The share sale is estimated to be worth more than Rs 2,000 crore. This transaction will be GIC's second largest in India, following its acquisition of a 33-percent stake in Gurgaon-based DLF's rental subsidiary in a $1.4-billion deal.  

Provenance Land's 202-room Four Seasons Hotel in Worli—the first operating Four Seasons in India—will soon share the property with the Four Seasons Private Residences Mumbai. GIC and Provenance Land have planned to develop the the Four Seasons Private Residences on a two-acre site next to the Four Seasons Hotel. The building, which is currently under construction, will have 26 serviced apartments across 55 floors. India's second Four Seasons hotel will be the 230-room Four Seasons Hotel Begaluru at Embassy One. 

Provenance Land began construction on the Four Seasons Private Residences in 2015 after investing Rs 650 crore into the project. The building is expected to be complete by 2020. The group plans to use to the funds from the stake sale to develop the Four Seasons residences. 

The purchase will follow GIC's $464-million acquisition of a 51-percent stake in the Sheraton Tokyo Bay Hotel from Fortress Investment Group in September 2017. The entire JV deal with Invincible Investment Corp., who acquired the other 49 percent of the hotel, totaled approximately $909 million. The 1,016-room hotel with a 175-room annex tower opened in December 2016 near Tokyo Disney Resort. The Sheraton is the largest “official” Disney hotel.