Skyline Group, a Bangalore-based property development company, plans to raise Rs 50 to 60 crore through a mix of private equity and debt to construct serviced residences in Bangalore.
The company, which announced its formal entry into hospitality sector, has partnered with Singapore-based Frasers Hospitality, a serviced residence management company, to manage the two serviced residence properties located in Bangalore.
Frasers Hospitality, a hospitality arm of property group Frasers Centrepoint Limited, a wholly-owned subsidiary of Fraser and Neave Limited, manages 81 properties in Europe and Asia under the brand name - FraserSuites, FraserPlace and FraserResidence.
“The company’s two serviced residences with a total of 210 units are to come up on Hosur road and Bellary road. To construct this we need Rs 100 crore. We are planning to raise this amount through a combination of debt, internal accruals and private equity,” said Avinash Prabhu, managing director, Skyline Group.
“As our share, we and our partner Indiareit Fund Advisors, a Piramal Enterprises’ real estate venture capital fund are, working out as to how much funds to commit and the balance is to be met by private equity or debt or both,” he added.
Indiareit Fund Advisors by investing Rs 225 crore has partnered with Skyline Group to jointly develop about 30 projects in south India through a special purpose vehicle (spv) route for each project.
The project, branded as ‘Fraser Residence Beverly Park’ and situated on Bellary road near Hebbal, will be operational in nine months and the second project, ‘Fraser Place’, to be built on Hosur road will be ready in two years.
Speaking at the contract signing ceremony, Singapore minister for finance, Tharman Shanmugaratnam described the partnership as synergy and opportunities that exist between businesses in India and Singapore.
The minister called upon the business houses in India to utilise Singapore as gateway for their market entry into Asia, raise money and get listed for more visibility in the region Choe Peng Sum, chief executive officer, Frasers Hospitality, said, “For our first launch in India, we chose Bangalore as it has high mix of business visitors, expatriate community as well as local business houses.”
“In addition to Skyline Group in Bangalore, we have tied up with Minerva Group to set up Fraser Place Whitefield, a serviced residence in Whitefield area in Bangalore. In India, we have lined up seven projects - one in Hyderabad, three each in Bangalore and New Delhi. In all, at the end of two years we plan to have an inventory of 700 rooms,” he added.
The company is also studying opportunities in other cities and is in talks with local developers in Chennai, Kolkata, Mumbai, Ahmedabad, Nagpur and Pune for next phase of expansion.
