The deal values the entity at around Rs 2,300 crore
The deal values the entity at around Rs 2,300 crore.
Indiabulls InfraEstate owns two parcels of land in Worli area of Mumbai_ Bharat Textile Mills and Poddar Mills_which together have over 10.6 acres of land. Indiabulls Real Estate is developing its Bleu project on this land.
An Indiabulls executive confirmed the news but said, "the due diligence is on. We are a couple of weeks away from concluding the deal.”
A Xander spokesperson said, "as a policy, Xander does not comment on market speculation."
This is the second round of funding Indiabulls is getting for this arm. Earlier this year, IL&FS Investment Managers, the private equity arm of IL&FS group bought 9.4% stake in the Indiabulls InfraEstate for Rs 200 crore valuing the arm for around Rs 2100 crore.
In August 2010, Indiabulls bought two parcels of land from National Textile Corp for over Rs 2000 crore in an aggressive auction process.
“The deal suggests that funds are interested in prime residential spaces. Mumbai and Delhi are doing well in terms of residential sales.
That’s why PE funds are putting money there. It also demonstrates that developers who have wherewithal to complete projects attract investors,” said Ambar Maheshwari, managing director, corporate finance at Jones Lang LaSalle.
However, overall PE deals in real estate are declining. The private equity flow to the realty sector has dropped 15% in the first three quarters of 2012, from the same period last year, on the back of regulatory and investment concerns, said a report by Cushman and Wakefield, an international consultancy.
“The fall in number of deals was mainly due to a lot of concerns on the government policy front coupled with an uncertain investment scenario, valuation and continued focus on exits for some vintage funds”, said Sanjay Dutt, executive managing director - South Asia, Cushman & Wakefield in a statement released yesterday.
Air India has resumed flights to the US. Flight AI 101 from Delhi to New York and AI 191 form Mumbai to Newark will operate on schedule early ...