Monsoon Capital buys 50% in Phoenix Group's project

Monsoon Capital, a US-based private equity firm, picked up 50% equity stake for nearly $16 million in a real estate project promoted by Phoenix Group, a city-based real and infrastructure firm.

Monsoon picked up stake in a special purpose vehicle formed to execute Golf Edge - a property of 1-million square feet comprising a five-star hotel and residential complexes involving an investment of Rs 350 crore at Gachibowli, the IT district of Hyderabad.

Phoenix Group Managing Director Gopikrishna Patibanda, without revealing the exact investment made by Monsoon, said the project cost would be Rs 350 crore on 60:40 debt-equity ratio and the PE firm picked up 50% stake in the SPV.

"The project is being financed on 60:40 debt-equity ratio and Monsoon Capital invested 50% of the equity recently," Patibanda told reporters here today.

Catalyst Sansara India Opportunity Fund holds 20% equity stake in the holding company of Phoenix Group that is currently executing around Rs 10,000 crore worth real estate projects spread across three southern India states involving 30 million square feet, Patibanda said.

On Golf Edge, he said the project will have two 30 storied residential towers comprising 497 flats and a 210 room five-star hotel to be managed by Inter Continental Hotels. The total project is expected to be ready by 2014, he said.

According to him, the company has also tied-up half of the equity funds from seven private equity funds for another seven residential projects that are coming up in the city at an investment of Rs 2,000 crore.

The company expects to complete all the 30 million square feet projects in hand in three southern India states over the next five years and may offer exit route to couple of PE investors in the next 2-3 years, he said without revealing the names of the PE firms.