 "Indiabulls' realty arm buys back PE investment for Rs 1,172 cr")
Indiabulls Real Estate, the realty arm of the Indiabulls group, has bought back the entire stake of FIM, an America-based private equity (PE) fund, in its seven project subsidiaries for Rs 1,172 crore. The announcement was made on Sunday.
FIM had made 1.3 times the return on its investment, made in 2007. Part of Farallon Capital Management LLC, it held a 49 per cent equity stake in these joint ventures; it had invested Rs 847 crore in 2007.
These project companies are currently building residential apartments over 120 acres in Gurgaon, 160 acres in other areas of Delhi and the National Capital Region (NCR), and 15 acres in Chennai.
Late last year, Indiabulls Real Estate sold a 35 per cent stake in its arm, Indiabulls Infra Estate, for Rs 1,000 crore. The company is developing projects in the Worli area of this city. Exits by PE funds in real estate have been rather slow. Of the $13.5 billion (Rs 83,450 crore at the current exchange rate) invested in Indian real estate between 2005 and 2010, only $3.3 billion has exited so far, said property consultant Jones Lang LaSalle. The slowdown in the property market since 2008-09 has been the main reason, consultants said.
Of the $3.2 bn, 54 per cent were promoter buybacks, JLL said.
Indiabulls Real Estate’s first quarter profit has been a little more than double from a year before, to Rs 70.2 crore.
Revenue also more than doubled to Rs 508 crore in the three months ended June. The net worth is Rs 6,830 crore and it is developing 73 million sq ft across Mumbai, the NCR and Chennai.
FIM had made 1.3 times the return on its investment, made in 2007. Part of Farallon Capital Management LLC, it held a 49 per cent equity stake in these joint ventures; it had invested Rs 847 crore in 2007.
These project companies are currently building residential apartments over 120 acres in Gurgaon, 160 acres in other areas of Delhi and the National Capital Region (NCR), and 15 acres in Chennai.
Late last year, Indiabulls Real Estate sold a 35 per cent stake in its arm, Indiabulls Infra Estate, for Rs 1,000 crore. The company is developing projects in the Worli area of this city. Exits by PE funds in real estate have been rather slow. Of the $13.5 billion (Rs 83,450 crore at the current exchange rate) invested in Indian real estate between 2005 and 2010, only $3.3 billion has exited so far, said property consultant Jones Lang LaSalle. The slowdown in the property market since 2008-09 has been the main reason, consultants said.
Of the $3.2 bn, 54 per cent were promoter buybacks, JLL said.
Indiabulls Real Estate’s first quarter profit has been a little more than double from a year before, to Rs 70.2 crore.
Revenue also more than doubled to Rs 508 crore in the three months ended June. The net worth is Rs 6,830 crore and it is developing 73 million sq ft across Mumbai, the NCR and Chennai.