JPMorgan picks 3% stake in BPTP for Rs 250 cr

BPTP made news this year when it bagged a Rs 5006 crore Noida land deal, outbidding well known developers such as DLF, Omaxe and Ansals. The company, which had earlier sought an extension for the payment of first instalment of Rs 1,251.5 crore for the Noida land, has since paid the money.

Citigroup Property Investments (CPI) also holds 5.89 per cent stake in the company which it bought for Rs 322.50 crore last year. "The Noida deal and the company's plans to make it a business complex has increased the valuation of the company, '' sources said.

The company is expected to use the funds to finance its ongoing projects including the one at Noida, where it is building an international business ditsrict, sources added.

''The deal indicates that private equity is the best available for property developers who are hit by hike in interest rates, slowdown in property sales and rise in input costs among others. Private equity is still upbeat about Indian property sector which is giving returns in excess of 25 per cent,'' said an analyst who tracks the real estate sector.

In March last year, BPTP entered into a 51:49 joint venture agreement with global investor Merril Lynch to develop an IT park in Gurgaon, which has a saleable area of 6.25 lakh sq ft. Merrill Lynch invested Rs 112 crore in the JV.

Citigroup Property Investors (CPI) has also invested Rs 640 crore in four special economic zones (SEZs) being developed by BPTP, picking up a 40 per cent stake in the special purpose vehicle recently.