JLL aids India’s first single largest investment transaction by an Insurance firm

Aiming for the best investment

Max Life Insurance ranks among the top five insurance companies in India. The firm boasts of having more than 20% of the market share and managing assets over INR 60,000 crore. For starters, as per the rules of the Insurance Regulatory and Development Authority (IRDA), insurance companies can invest up to 5% of their own ‘traditional’ funds in real estate and the client was interested in investing along the same lines.

They were  keen to invest in an independent, Grade A, rent yielding asset but the brief didn’t end there. There were quite a few prerequisites which had to be met. From finding a pre leased asset which was preferably housing a single tenant, to ensuring a higher yield than that of the standard market, we strived to make this deal better on all fronts.

It takes a team to achieve the incredible

Onboard, we began exploring options that met the client’s stipulations. Our teams evaluated potential prospects in multiple cities across India while considering the outlook of the market. The project required a high-level of collaboration among our teams in different cities. After assessing all viable options, we finally advised the client to evaluate Pune as a long-term investment destination.

Working closely on the assignment, our Pune and Mumbai PWG teams shortlisted an independent commercial building located in Magarpatta City in Pune as the most feasible option. The specifications of the property fitted perfectly into what the firm had enlisted. The building already had a global investment banking services holding company as its tenant. The seven-floor construction, along with a basement, is spread over a chargeable area of 180,000 sq. ft.

Sweet is the fruit of labor

We helped our client structure the entire transaction - from renewal of all leases and technical assistance to legal due diligence. After being exceptionally satisfied with their investment decision, the client once again engaged us in exploring similar opportunities across the country.

As the word spread, two other insurance companies reached out to us and JLL advised them on successful investments within the same complex.