India Investment Property » Spv

Sobha in talks with private equity

Fri, 26 Jun 2009 07:28:16 +0000

Real estate major Sobha Developers is in talks with private equity players such as JP Morgan, Actis and IL&FS for selling stakes in some of its projects to raise much-needed fund for the development. Sobha is also planning a qualified institutional placement to reduce debt burden by almost eight hundred crore rupees this fiscal. The capital raised through QIP is used for paying off its debt while roping in financial investors at special purpose vehicle level is about kick-starting certain projects with near-term development horizon.
Sobha Developers carries a debt of Rs 1,850 crore. Sobha is looking to earn up to Rs 1,500 crore via the QIP route in the coming weeks. The exact quantum of the mop-up would be announced soon.
The developer has been looking at a three-pronged approach in its capital raising plans. First one is QIP at entity level, second is SPV deals and last one is divesting some of its land bank assets.

Gayatri To Buy Five Infrastructure Companies

Tue, 27 May 2008 09:53:38 +0000

Infrastructure firm Gayatri Projects is all set to acquire five smaller infrastructure firms in the country, paving the way for its inorganic expansion. The company plans to fund these acquisitions through divestment of 49% equity in favour of Australian multi billion-dollar wealth management firm AMP.

The latter will bring to the table Rs 200 crore through foreign direct investment (FDI) for the planned expansion of Gayatri Infra Ventures (GIVL), a subsidiary of Hyderabad-based developer Gayatri Projects.

The company plans three acquisitions in the north, giving it access to projects on the north-south corridor, and two acquisitions in the south, including that of the Cyberabad Expressway eight-laning project. Western UP Tollways (WUPTL), Gayatri Jhansi Roadways (GJRL), Gayatri Lalitpur Roadways (GLRL), Hyderabad Expressways (HEL) and Cyberabad Expressways (CEL) special purpose vehicle (SPV) are the other acquisition targets.

WUPTL is a joint venture SPV with Satyam-promoted infrastructure firm Mytas and Nagarjuna Construction Company. The plan is to acquire 40% WUPTL stake while 30% each remains with other two partners for the strengthening, improvement and maintenance of NH 58 in Uttar Pradesh. Gayatri also plans to buy out 49% stake of GJRL and GLRL in their joint ventures with IDFC.

Citi arm takes 40% in BPTP

admin — Wed, 09 Apr 2008 08:35:26 +0000

New Delhi :- Property investment division of Citibank has invested one hundred sixty million dollar in real estate major BPTP. earlier Citibank Property Investment (CPI) had invested eighty million dollar in the company to take 5.89 per cent stake. The hottest investment will be made in a special purpose vehicle (SPV) of BPTP, which is executingfour SEZs in the national capital region. According to a source, CPI will acquire 40% stake in the SPV.

The SPV is applying IT specific SEZs at Noida, Greater Noida, Faridabad and Gurgaon. The Noida SEZ is being developed on 25 acre of land, Greater Noida on 100 acre, Faridabad on 54 acre and Gurgaon on 27 acre of land. In the first phase, the company will develop six million square feet in the four SEZs by 2010. The total area to be developed in the four SEZs is 20 million square feet.

All four SEZs have got the approval of the government and land has been acquired. The money raised by the SPV will fund the project.

The government rejected to extend the tax benefit for software technology parks after March 31, 2009, IT SEZs have become popular amongst the export oriented units. The developer of SEZ will get tax concessions not only on profit, but also on all inputs required for the project.

The deal reveals that the real estate tale in the country is still shining and the investors are prepared to put money, provided the project is at the implementation stage, said a banker. He said if India maintains an eight per cent growth, it will require enormous real estate supply.