India Private Equity News


DLF SEZs first to get hedge fund investment

The Economic Times

DE Shaw, the leading US hedge fund with over $30 billion in assets, has invested $400 million in a DLF group firm that will set up special economic zones across the country. A group company of DLF Assets, DLF Universal is launching a large public offering of shares aimed at raising over $2 billion. The issue is expected to open later in the week. DLF Assets Private Ltd, DLF affiliate firm is setting up SEZs in Gurgaon, Chennai and Hyderabad. Details of valuation and the stake being held by DE Shaw are not known. The New York-based DE Shaw is one of the world’s leading hedge funds. Absolute Return, a hedge fund intelligence publication ranked it among the top five global hedge funds with assets under management of over $26 billion in March this year.

Foreign investors to invest in Anant Raj

The Economic Times

A clutch of foreign investors led by the Government of Singapore Investment Corp. Pte (GIC), billionaire investor George Soros and Morgan Stanley will acquire stakes cumulatively worth Rs 683 crore in Anant Raj Industries. GIC, which manages Singapore’s foreign exchange reserves, will pick up 35.14 lakh shares in the domestic real-estate developer for about Rs 432 crore, Anant Raj Industries informed the BSE. Besides, Morgan Stanley Dean Witter will acquire 13.65 lakh shares for Rs 168 crore and Soros’ hedge fund Quantum (M) Ltd will acquire 6.80 lakh shares for Rs83.60 crore. All the investors will acquire the stakes at the price of 1,229.51 per share (determined as per SEBI (DIP) Guidelines) on preferential basis to the registered FIIs.

Ansal ties up with Noor capital for 2 projects

The Economic Times

Ansal Properties and Infrastructure Ltd signed an accord with Abu Dhabi-based investment firm Noor Capital and its advisor, India Realty Ltd for setting up two township projects in Uttar Pradesh. The projects in Agra and Ghaziabad are projected to record a turnover of around Rs 3,000 crore over the next 7-8 years. It is believed that Noor Capital will bring foreign direct investment of more than Rs 500 crore for the projects.

Noor Capital, an investment firm licensed and regulated by the Central Bank of the United Arab Emirates, has a diverse and multinational shareholder base, which includes the UAE, Kuwait, Saudi Arabia, Qatar and Bahrain.

Xansa enters into pact for real estate property sale

The Economic Times

Leading outsourcing and technology firm Xansa announced that it has entered into an agreement with Alpha Tiger Property Trust Ltd for sale and leaseback of the company's real estate interests in India for Rs 190.87 crore. The agreement appoints Alpha Tiger, which invests in and develops Indian real estate, as Xansa's preferred provider in India. The proceeds of the transaction, which are expected to be up to 35 million euros before expenses and taxes, would be used to reduce Group Net Debt. The agreement would enable Xansa to crystallise the value inherent in its real estate portfolio in the country and establish a strategic relationship with a local real estate partner.


IL&FS fund set to buy stake in Acme project

Business Standard

IL&FS Realty Fund, managed by IL&FS Investment Managers, is in talks with ACME Group, a Mumbai-based property developer, to invest Rs 300 crore in the company’s Rs 2,000 crore Ghansoli project near Mumbai. It is believed that the investment major is in advanced stages of talks with ACME to pick up a stake in the SPV for developing IT parks and townships in the central suburbs of Mumbai. Others in the fray to pick up a stake in ACME include US-based private equity firm Capitaline Advisors and American bank, Wachovia.

The ACME Group has developed over 58 projects in Mumbai in the last 30 years. The company’s ongoing projects include Acme Mall in Santacruz, Akshay Girikunj-4, Amartaru -VII, Acme Complex and Acme Amay in the western suburbs, Acme Ozone in Thane and Acme Avenue in Kandivili. It is also developing a tech park and an industrial park in Mumbai and an IT park in Pune.

HDFC realty arm buys 10 percent in Pune co for Rs.75 crore

The Economic Times

HDFC India Real Estate Fund has bought a 10 percent stake in Pune-based real estate company Paranjape Schemes for Rs 75 crore. Private equity investor GE Capital has also signed a deal worth Rs 250 crore with the company for developing an integrated township project in Pune. The company, which also undertakes construction activities, is also planning an IPO in the future. Paranjape Schemes, which has completed over 100 projects since its inception, also has an office in Singapore. The company has also launched a senior citizen housing scheme in Pune, which provides special benefits to senior citizens.

GE Earmarks Rs.8, 200 crore for real-estate investment in India


General Electric (GE) Co India is looking to put to work $2 billion (Rs 8,200 crore) in debt and equity across all types of real estate in India: residential, retail, townships and special economic zones (SEZs). GE, through their real-estate group in GE Commercial Finance, is one of the largest real-estate financiers with assets of $54 billion around the world. It intends to provide private equity to developers of commercial real estate; enter into joint ventures for development of projects and provide funding for development via debt as well. GE expects real estate, which formed a small part of its $1.9 billion revenues in 2006, to comprise a fairly large part of its targeted $8 billion of revenues in 2010.

GE Commercial Finance Real Estate was one of the earliest foreign real-estate investors in India having invested $63 million in the Ascendas India IT Parks fund that owns the landmark International Tech Park Bangalore. The joint venture fund will focus on developing and owning IT parks in India and plans to grow from the 2.6 million sq. ft of original space to a fund size of $500 million over the next five-odd years.

Wachovia picks up 15 percent stake in Vipul for Rs. 234 crore

The Economic Times

Real estate developers Vipul Ltd announced that Wachovia Corp. has picked up 14.95 percent equity in the company for Rs 233.92 crore through preferential allotment. Wachovia diversified

financial institutions in the US with leading market shares in numerous high-growth markets, extensive product offerings and industry-leading customer service.

Joint venture announced

The Times of India

Yatra Capital Limited, the first Euronext quoted Indian real estate company, has announced its first investment in Indian real estate. Yatra has committed up to Euro 21.6 million in equity for a 49% stake in a joint venture, which will initially develop three residential sites in Pune. All three localities are within the key corridors of growth in Pune and located next to the commercial and technology related developments. Yatra's joint venture partner is a leading and well-established real estate development company, Kolte Patil Developers Limited. Kolte Patil, incorporated in 1991, has developed and constructed 25 projects, of which 22 are in Pune and three are in Bangalore.

TCG plans $500-m PE fund for realty play

The Economic Times

The Chatterjee Group (TCG) is looking to set up a $450-500 million private equity fund for investments in real estate. The group, headed by Purnendu Chatterjee, which has investments worth $2.5 billion in several sectors, including technology, BPO and infrastructure, also has a stake in the $1.2-billion Haldia Petrochemicals. This will be the company’s first dedicated PE fund for its India investments. The fund has already believed to have seen a first closing of $100 million and may touch $450 million to $500 million by June end. The proposed fund, which has a mandate to invest only in real estate projects in India, will make investments in the top nine cities in the country, including Bangalore, Pune, Hyderabad, besides the four metros.

The fund is a joint venture with New York-based realty firm Vornado Realty Trust which manages over $33 billion of assets and TCG Real estate, the real estate division of the investment arm. TCG Real estate is a commercial real estate development company. It is believed that the fund is evaluating several projects, and has already zeroed in on two project worth $75 million and $50 million in the National Capital Region.

Arihant housing, JP Morgan property in tie-up

The Hindu Business Line

Arihant Foundations & Housing Ltd and JP Morgan Property Fund are in partnership to promote Rs 400-crore residential project near Chennai. The joint venture company, Escapade Real Estate Pvt Ltd, will implement the project at Maraimalai Nagar near Mahindra World City about 45 km south of Chennai on NH 45. Over 1.2 million sq ft of built-up space including villas and apartments are to come up at the site. This would include about 300 villas of about 2,000 Sq. ft. each and 330 apartments of 1,000-1,400 sq ft. The project will be launched in 4-5 months. Arihant Foundations has developed over 5 million sq ft of built-up space in prime areas in the city and has in the pipeline an equal size of projects. Apart from residential space, the company has also developed customised IT space.

Yatra capital to tap Euronext again

Business Standard

The NYSE Euronext-listed Yatra Capital, promoted by Saffron Asset Advisors, is planning the second round of fund-raising worth $140 million on the exchange in the next couple of months. Yatra raised $140 million on the Amsterdam-based NYSE Euronext in December 2006 to become

the first and only real estate investment company from India to be listed on the exchange. The company will invest $1 billion in realty projects in 2-3 years. Yatra raised funds from institutional investors in Europe, including Standard Life, Fortis, ING Clarion and Alpine. In the second round, it plans to raise money from the same sources.

Barclays, HSBC, Citigroup may invest in Phoenix mills

The Economic Times

Joining the beeline of foreign investors who remain interested in the Indian realty story - HSBC Financial Services, Americorp Ventures, Barclays, Citigroup and others are looking to pick up equity stakes in domestic real estate firm Phoenix Mills through a preferential issue. The 23.85 lakh share preferential issue could raise over Rs 400 crore. As per the special resolution, which the shareholders would consider by way of a postal ballot, Citigroup Global Markets are proposed to be allotted 8.66 lakh shares, followed by HSBC Financial Services (Middle East) with 4.15 lakh shares and DWS Invest Bric with 3.20 lakh shares.

Americorp Ventures (3 lakh shares), Rhodes Diversified (2.62 lakh shares), Barclays Mauritius (1.31 lakh shares) and another Mauritius-based entity DB Fund (90,000 shares) are also proposed to be allotted stakes in the preferential issue. Phoenix Mills is also seeking shareholders' nod to raise funds through placement of shares (in one or more tranches) to Qualified Institutional Buyers, for up to Rs 1,000 crore, subject to necessary provisions and approvals.

Fire capital to invest 250-mn DLR in realty projects

The Economic Times

Fire Capital Fund Mauritius Pvt Ltd, a global venture capital fund, plans to invest up to $250 million to develop integrated townships in 10 cities. By the year-end, the firm would also raise a $500 million fund to be dedicated to real estate and components of infrastructure. The fund made its first investment in Indore-based M Jhaveri Group in the 137-acre upcoming township Silver Springs being developed by it. This also marks the first foreign direct investment (FDI) in real estate in Madhya Pradesh.

Trinity eyes realty, to invest $3 billion

Business Standard

The AIM-listed Trinity Capital will invest $3 billion in three to five years in real estate-related projects in the country. Trinity has tied up with IL&FS to invest £ 238 million in Indian real estate and infrastructure projects. Trinity along with IL&FS and international investment bank, recently bought 5.92 percent stake in Mumbai-based developer D B Realty (DBR) Ltd, part of the Dynamix Balwas Group, for £25.72 million. DBR is a £ 500 million SPV, which is developing 12 real estate projects in Mumbai. Till March 31, 2007, Trinity has invested or committed £ 172 million in Indian projects with the IL&FS joint venture. Till date, it has committed £70.5 million under two JVs with IL&FS. It has deployed £ 41.5 million through four deals under the agreements. With residual commitment of £29 million under the JVs with IL&FS, the total of funds invested and committed includes 72.3 percent of Trinity’s total net capital.




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