Indiabulls Real Estate gains on talks of stake sale

Shares of Indiabulls Real Estate have escalated 2.7% to Rs 69.10 on the Bombay Stock Exchange (BSE) in the early morning trades after the real estate company announced that it is looking to sell its stake in a property in London, which is acquired last year.

The company is on hunt for a strategic partner who can buy 40% of Indiabulls’ stake in the project in the Mayfair locality of central London. For the same, the real estate company has approached private equity (PE) firms, sovereign funds and family offices and expect the deal to raise around Rs 1,000 crore.  People familiar with the deal said to media houses that the deal is expected to be completed in few weeks.

According to media reports, the Indian developer acquired the property last year by bidding over Rs 1,500 crore through internal accruals. The current lease on the property will be over by 2017, following which the developer plans to transform it into a luxury residential property.

The stock opened at Rs 67.60 on the BSE and reached a high of Rs 69.30. At 10 AM, a combined total of 3.2 million shares exchanged hands on the counter of BSE and NSE.