ICICI Venture to exit Express Towers

In talks to sell 49% stake in company that manages the property for Rs 1,000 crore

ICICI Venture (I-Ven), one of the largest private equity firms in the country, is looking to sell 49% of its stake in Indian Express Newspapers (Mumbai) Ltd (IENL), which manages Express Towers located in Mumbai’s Nariman Point.

I-Ven was currently in talks with a number of investors such as Blackstone, two executives who are aware of the plans said.

I-Ven is looking at getting around Rs 1,000 crore for its stake, which is double its investment of Rs 500 crore made four years ago, sources familiar with the developments said.

IENL is jointly owned by the Indian Express Group and IAF III, a fund managed by I-Ven.

“They have received a number of enquiries from private equity funds and investors who want to buy the stake. But the talks are preliminary so far,” said the executive.

When contacted, an I-Ven spokesperson said as a matter of policy, the company neither confirmed nor denied any speculation on its deals/transactions.

When contacted, a senior Blackstone executive offered “no comments”. In fact, Blackstone occupies a floor in the 25-storey building which is owned by housing finance major HDFC.

Though the executives said that investors had also shown interest in buying stake from the Express Group, this could not be verified independently.

Mails sent to Viveck Goenka, chairman of Indian Express group, did not get any response.
In early 2008, I-Ven picked up the stake in the company through its fund IAF III. After it picked up stake, the private equity firm also renovated the lobby area and installed high speed lifts in the building. 

I-Ven was earlier planning to list yield generating assets such as Express Towers, but the tough market conditions played a spoilsport. 

Express Towers was built in 1974 and was designed and constructed by Joseph Allen Stein and its tenants include Warbug Pincus, Bank of America, Wells Fargo among others. Express Towers was designed and constructed by renowned architect Joseph Allen Stein.

After its first fund of $ 550 million (around Rs 3000 crore today), I-Ven is in the process of raising its second fund of Rs 1000 crore.