Mumbai-based Hiranandani Group has signed a deal to sell its commercial assets in Powai to Canada-based Brookfield Asset Management for 1 billion dollars (Rs 6,700 Crores), making this one of the largest commercial property deals made in the country.

Confirming the development, sources inside the Hiranandani group told NDTV that a confidentiality clause was in place and that an official statement would be released in 4 months, once a Special Purpose Vehicle (SPV) had been formed.

Totaling about 4.5 million sq. feet, the group’s commercial assets in Powai consists of retail and office spaces, most of which have been leased out to high-value clients including the likes of TCS, Wipro and Nomura among others. These assets are held by the Hiranandani Group, which is jointly owned by brothers Niranjan Hiranandani and Surendra Hiranandani.

Commercial real estate in India has seen a boom recently, thanks to the low supply of Grade-A office stock. Private equity funds and various sovereign funds have been busy snapping up prime commercial assets to take advantage of this. For instance, Brookfield Asset Management recently acquired a 100% stake in 4 Special-Economic Zones (SEZs) owned by Unitech Corporate Parks in 2014. Analysts say this is part of the company’s larger strategy to launch a Real-Estate Investment Trust (REIT).

Meanwhile, real estate experts say the deal will give the Hiranandani Group a huge pool of liquidity to draw from, as the company works on completing mega-projects in Panvel, Chennai, and Alibaug. The deal is also expected to help the company transition from a family-owned firm into a more corporate one. Jackbastian Nazareth, former CEO of Puravankara Projects was recently brought on board as CEO of Hiranandani Communities, a move that company insiders say is indicative of the family’s desire to have professional managers gradually manage the firm.

Nikhil Narayan Sivadas, Assistant Editor, NDTV