Mumbai (PTI): A realty fund managed by Kotak Mahindra Investments will invest Rs 140 crore in Sunteck Realty to acquire a 10 per cent stake in the latter.
This would be one of the first investments from the new USD 400-million realty fund recently raised from domestic investors by Kotak.
The investment would be through a combination of equity and convertible preference shares, which, on conversion will result in a 10 per cent stake in the company, on a fully-diluted basis, Sunteck said in a release on Monday.
Sunteck Realty is currently listed on the Bombay Stock Exchange.
The group plans to utilise the funds towards developing residential and commercial projects in Mumbai, Goa, Pune, Nagpur, Chennai and other key Tier-II cities.
The group is currently developing a premium residential project in Mumbai at Bandra-Kurla complex branded as Signature Island, apart from other office/IT park projects in the metropolis.
Group's Chairman Kamal Khetan said: "This investment will complement our existing expansion plans. We intend to add other value-accretive properties to our existing list of acquisitions, especially in Mumbai. We would also like to extend the group's footprint to other carefully selected Tier II cities across India."
Kotak Realty Fund's Chief Investment Officer V Hari Krishna said: "We are very excited about investing in Sunteck Realty group which has emerged as a strong participant in the booming real estate market in India."
1 comment:
Nice to know Kotak has taken 10% in Insul Electronics / Sunteck Reality - but where can one get details of what the company has & will offer - nowhere can one find any data apart from some financial figures which somehow do not justify the present market price of Rs.1492 / share
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