Mumbai, July 20, 2005 - GE Commercial Finance Real Estate today announced its official entry into commercial real estate investment in India. GE will invest US $63 million in a newly formed fund - the India IT Parks Fund - sponsored by Asia's leading business space provider, Ascendas Pte Ltd ("Ascendas"). Ascendas has also invested in the fund along with other international investors.
The Fund will own and invest in Information Technology Parks (IT Parks) that support the IT & ITES industry, a high-growth sector in India. Ascendas will contribute two of the premier IT Parks in India into the fund; International Tech Park, Bangalore and the Vanenburg IT Park in Hyderabad.
"Our investment with Ascendas underscores GE's commitment to growing our presence in the Indian commercial real estate market," noted Mr. Scott Bayman, President & CEO, GE India.
Mr. Bayman continued, "Ascendas is a strong partner with a proven track record in managing business properties in the Indian real estate sector. This partnership combines GE's financial strength with Ascendas' strong tenant relationships, enabling us to build a strong, diversified commercial real estate portfolio that will help support India's fast-growing IT support sector. "
The Fund plans to acquire and develop up to approximately US $500 million in assets over the next seven years. Following this transaction GE Commercial Finance Real Estate Asia Pacific will have aggregate real estate investments of more than US $4 billion with operations in Japan, Korea, Australia, New Zealand and India.
Ms. Chong Siak Ching, President and CEO of Ascendas Pte Ltd, said, "The India IT Parks Fund is very much a part of Ascendas' business strategy in the region, to re-deploy capital for our growth as Asia's leading provider of business space, as well as to develop a real estate funds management core business."
"Structured as a private fund, the India IT Parks Fund is an ideal vehicle for sophisticated investors to invest in real estate, both matured and development assets, in India's fast-expanding economy," she continued. "The confidence of investors such as GE is of particular significance to Ascendas."
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GE Commercial Finance Real Estate is one of the world's leading resources for commercial real estate capital. Headquartered in Stamford, Connecticut, the business has assets over $28 billion and more than 30 offices throughout North America, Europe and Asia/Pacific.
GE Commercial Finance offers businesses of all sizes an array of financial services and products worldwide. With over $230 billion in assets and an expertise in the mid-market segment, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. A wholly owned subsidiary of the General Electric Company, GE Commercial Finance is headquartered in Stamford, Connecticut, USA.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
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