Tanglin Developments, the real estate development arm of Bangalore-based Coffee Day Group, is at an advanced stage to buyback the Rs 380 crore investment made by Hypo Real Estate, the German real estate funding behemoth. Hypo Real Estate, under severe stress after getting getting a bloodied nose during the recent slowdown, is now under the control of the German government.
Tanglin Developments, led by V G Siddhartha of Coffee Day Holdings, had effected a structured fund raising during March 2007 from Hypo Real Estate Bank International, a member of Hypo Real Estate Group. Tanglin had raised these funds for the financing and development of 2 million square feet of additional IT office space at Global Tech Park in Bangalore. During 2007, Hypo had stated that the existing Global Tech Park comprises approximately 700,000 sq ft of office space and its funding will enable Tanglin to develop an adjacent 67 acre site which has been designated as a special Economic Zone (SEZ). HP-MphasiS, Texas Instruments, MindTree are among the clutch of IT corporations who have their campuses in Global Tech Park. Senior analysts tracking the realty space indicate that Tanglin is in negotiating for a discount to buyback the investment from Hypo. Coffee Day Group officials did not respond to queries.
Tanglin Development is a wholly-owned subsidiary of Coffee Day Resorts Private Limited, which during early last year raised Rs 1,200 crore from Standard Chartered Private Equity, KKR and New Silk Route. Tanglin Developments has so far developed two sprawling technology parks — one on the Bangalore-Mysore road spread over 91 acres of land and TechBay on 23 acres of land on the oceanfront at Mangalore in Karnataka. Industry sources further indicate that the Coffee Day Group is also firming up plans for a resort adjacent the tech park in Mangalore. Coffee Day Resorts current has three resorts under its control at Chikmagalur, Kabini and Bandipur.
In addition to the two tech parks at Bangalore and Mangalore, it owns close to 100 acres of land on the near Pune, which may also be developed into a tech park.
In 2009-10, TDL had a net loss of Rs 2.84 crore on an operating income of Rs 36.59 crore as compared to a net loss of Rs 1.32 crore on an operating income of Rs 22.5 crore in 2008-09. However the net cash profits of TDL in 2009-10 was Rs 11.38 crore as against Rs 7.36 crore in 2008-09.