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Sobha gives exit to PE firm from housing project for Rs 98cr

Press Trust of India  |  New Delhi 

Private Lapis Capital Advisors (formerly Sun Apollo) has exited from realty firm Sobha Ltd's housing project in with about two- fold return on investment.

The PE firm had invested Rs 50 crore in this project and received Rs 98 crore in four years.

"The realty PE Fund Lapis Capital Advisors Private Ltd (formerly Sun Apollo) has fully exited its investment in Sobha Palladian project of Sobha Ltd in with approximately 2X return," Sobha said in a statement.

"It had invested Rs 500 million in a 50:50 partnership with Sobha in its SPV 'Sobha Highrise Ventures Pvt Ltd' and has received back a total of Rs 980 million over a period of 4 years starting 2013 from internal accruals, without impacting Sobha's debt-equity ratio," it added.

This is seen as an excellent investment return in real estate market given the challenging economic environment for the past several years, the company said.

"We are probably one of the first companies in Bengaluru real estate market which has been able to give exit to its PE fund partner with handsome returns, given the current slow moving realty sector market," Sobha Vice Chairman & Managing Director J C Sharma said.

Stating that the government has relaxed the FDI norms considerably, he said: "The timely exiting of PE Fund Lapis from one of our projects in Bangalore with good profit is testimony to the fact that there is great promise in this sector for FDI funds.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 31 2017. 18:13 IST