NEW DELHI: Godrej Properties, the real estate arm of the Rs 7,500-crore Godrej group, is learnt to be in talks with private equity investors to raise Rs 200 crore for its two realty projects in Hyderabad and Kolkata. The company is looking to dilute 49% stake in both the projects to PE investors.
“Talks are on with several investors for diluting 49% stake in two of our projects in Hyderabad and Kolkata. The final decision is yet to be taken,” Godrej Properties chairman Adi Godrej told ET
Mr Godrej declined to comment on the valuation of the two projects. Sources in the industry say the deal size for both the projects together is in the range of Rs 180-200 crore. The two projects may be set up as a special purpose vehicle in which the majority stake will be retained by Godrej Properties.
Sources close to the development say the company has been in discussions with about 7-8 investors and is learnt to be in advanced stages of discussions with two of them including the London-based real estate fund Trikona Capital.
Mr Godrej however declined to name the investors he is in discussion with. “I can not disclose the names,’’ he said. An e mail sent to Trikona did not elicit a response. Trikona raised nearly $500 million at London Stock Exchange’s AIM market last year to invest in the real estate market in India.
The Godrej group is focusing heavily on its real estate business and expects it to be a major revenue generator. Currently, the group’s real estate business accounts for 8-10% of its total revenues. The group expects this could go up to 20-25% over the next five years. An IPO is also on the cards for Godrej Properties to fund its expansion
http://economictimes.indiatimes.com/Markets/Real_Estate/Commercial/Godrej_realty_arm_in_talks_to_raise_Rs_200_cr_/articleshow/2085079.cms
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