Indiabulls buys out DLF's stake in Kenneth Builders

Indiabulls Infrastructure (IIL) has acquired from DLF the remainder 50 per cent stake in Kenneth Builders & Developers, the year-old 50:50 joint venture between the two companies.

The amount paid by Indiabulls Infrastructure, a subsidiary of property developer Indiabulls Real Estate, is not known.

IIL held 50 per cent in Kenneth through its subsidiary Bridget Builders & Developers and now owns the entire 100 per cent in the company, Indiabulls said today.

Kenneth won the bid for the 35.8 acre land auction by Delhi Development Authority to develop a residential project at Tehkhand in South Delhi. The company paid nearly Rs 450 crore for the land in 2006.

"Indiabulls will develop the Tehkhand project independently. We will start bookings this month and we are expecting a rate of Rs 15,000 a square feet," said Ajith Mittal, president, corporate affairs, Indiabulls Group. The gated community project is targeted at high income individuals. (A gated community project is a condominium of residential apartments.)

According to sources, the acqusition could give Indiabulls a crucial foothold in the property market in the National Capital Region. Indiabulls is developing 2-3 projects in the NCR through various subsidiaries in Gurgaon, Sonepat and Delhi.

Indiabulls is also developing two commercial complexes in Mumbai on properties where once stood textile mills in the Lower Parel area.

It has an ongoing residential project in Panvel, three SEZs in the Mumbai Metropolitan Region, a 3,000 acre SEZ in Nashik and another at Raigad, Maharashtra.

On Tuesday, Indiabulls announced the initial public issue for its property trust Indiabulls Properties Investment Trust (IPIT) on the Singapore Stock Exchange. IPIT will acquire the One Indiabulls Centre and Elphinstone Mills, developed and owned by Indiabulls Properties Pvt Ltd and Indiabulls Real Estate Company respectively, the company said.

Indiabulls Real Estate shares lost 0.13 per cent to close at Rs 661.25 on the Bombay Stock Exchange today. DLF ended 2.87 per cent lower at Rs 844.85.