Ansal Properties & Infrastructure (Ansal API) today said private equity firm Red Fort Capital has agreed to pick up 26% stake in a joint venture (JV) to develop a residential township project in Gurgaon for Rs 200 crore.
"Red Fort will invest a total of Rs 200 crore in the JV, in which it will hold 26% stake and Ansal API will hold the remaining 74% stake," Ansal API said in a release.
The joint venture would develop a 108-acre township project adjacent to its existing 112-acre Esencia township project in Gurgaon.
Ansal API said the investment by Red Fort in the JV would be through a mix of equity and compulsorily convertible debentures (CCDs).
"We are happy to have Red Fort on board for expansion of one of our projects in NCR. This tie-up shows that the PE funds are still keen to invest in established companies in the real estate sector," Ansal API Vice-Chairman and Managing Director Pranav Ansal said.
The details of the Esencia Extension township project are currently being finalised, Ansal API said.
"Publicly listed real estate stocks have seen unfair declines in market values over the last couple months. This investment reflects Red Fort's confidence in both residential real estate markets in India as well as proven leaders in the industry", Red Fort Capital Managing Director Subhash Bedi said.
Ansal API had earlier entered into a similar funding deal with ICICI Prudential Asset Management Company in a Special Purpose Vehicle which is developing a residential project in Aquapolis, a 131 acre township project in Ghaziabad.
The company also raised Rs 231 crore in October last year through a QIP issue. The fund raised through this was mainly used for retiring part of the high cost debt.