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Yatra Capital, a Jersey-based private equity firm, will invest 4.4 million euros in an upcoming Taj hotel in Calcutta. Yatra Capital will acquire a 40 per cent stake in Jalan Intercontinental Hotels Private Limited, the company which is building the 200-room property. The hotel will be managed by Indian Hotels Limited under the Taj Gateway brand. Built over a 1.9-acre plot, the hotel will be located at the junction of the Rashbehari Connector and EM Bypass. Yatra Capital is the first Jersey-based company to be listed on Euronext, Amsterdam. Yatra invests in India through Mauritius-based fund — K2 Properties Limited. The hotel will cater to the needs of IT and ITeS companies located in Sector V of Salt Lake, Rajarhat and New Town. […]
In the midst of a general slow down in the Indian real estate market, TAIB Bank, a leading private bank based in Bahrain, has picked up a 26% stake in Anant Raj Projects for Rs 216 crore. The deal, one of the first Shari’ah-compliant transactions in the Indian real estate industry, puts the valuation of the subsidiary of New Delhi-based Anant Raj Industries (ARIL) at Rs 831 crore. TAIB Bank has routed the investment through its real estate investment arm Acacia Real Estate. Anand Raj Projects plans to develop of 600,000 sqft of retail space which is expected to be operational by first half of 2009. The proceeds of the transaction will be invested in this project. DTZ India, the Indian subsidiary of DTZ Holdings, and International Property Consultant were the advisors to the transaction. Confirming the development, ARIL executive director Amar Sarin said: “Though the real estate market is passing through a tough phase, the investors are still keen to invest in bankable projects. Our deal with Acacia reinforces the fact that in real estate and, especially, in retail sector, location still remains the fundamental value generator.” […]
Donald Trump Jr, whose father built a multibillion dollar fortune in real estate, plans to set up a fund of as much as $1 billion to buy property in India, betting on the nation's growing wealth. “Trump may create the privately held fund with investors including an Indian family,” he said. He didn't give specifics on how he'll raise the money, or when the first investment will be made. Trump would join Deutsche Bank AG and Lehman Brothers Holdings Inc in amassing funds to invest in a market that recorded the world's highest growth in millionaires last year, fueling demand for luxury homes. The highest borrowing costs since 2002 have ended India's five-year property boom, curbing valuations of projects and developers. “The real estate market is in a downturn now,” said Ritesh Vohra, director of investments at Mumbai-based Saffron Asset Advisors, which manages more than $400 million in two property funds. “There's some more pain left over the next two years or so, and that could be an opportunity to invest.” […]
LIC Housing Finance, the mortgage arm of Life Insurance Corporation of India (LIC), is set to foray into the venture capital arena and intends to start a Rs 500 crore real estate fund by the end of this financial year. LIC Housing Finance is reportedly scouting for a banking partner for raising capital and will soon approach the Securities and Exchange Board of India (Sebi) to set up an asset management company. To invest in listed companies, companies usually register with Sebi. “This is an opportune time to enter, considering the demand. We will form a separate asset management company to manage this fund,” a senior LIC Housing Finance executive told Business Standard. Based on the response to the real estate fund, the company will decide on whether it will expand its presence in the venture capital space. […]
RJ Corp-owned Devyani Food Industries has acquired 100% stake in ice-cream venture Cream Bell, having acquired part-owner CK Jaipuria’s share in the entity. The share transfer, in tranches, was completed last week. Sources said the Cream Bell business is valued at around Rs 450-550 crore. The historical valuation of Cream Bell, carried out by private investment firm International Finance Corporation (IFC) a year ago, was about Rs 120 crore. It has subsequently multiplied about four-five times with capacity expansion and increase in Cream Bell’s market share. The Ravi Jaipuria-promoted RJ Corp is now in the process of setting up a greenfield facility in Goa for the ice-cream venture on an investment of Rs 40 crore to double installed capacity. The new plant is expected to go onstream in about four months’ time, and is being set up to cover a pan-India footprint for the ice-cream business. […]
Info Edge India, which owns naukri.com, jeevansaathi.com and shiksha.com, will buy 40% stake in New Delhi-based education content developer Applect Learning Systems for Rs 6.5 crore. The company has already paid Rs 1 crore for the stake and will disburse the rest over the next 18-24 months, after Applect achieves some pre-determined milestones. Info Edge has tapped into its reserves, which stand at about Rs 300 crore, for the stake buy. Applect Learning is a subsidiary of IMS Learning Resources, which provides coaching for higher education entrance exams. It provides content development services with a focus on education in the K-12 segment. […]
Global financial giant JP Morgan Chase is investing Rs 130 crore for 33% stake in an SPV of realty firm Alok Infrastructure, a wholly-owned subsidiary of Mumbai-based textile maker and retailer Alok Industries, according to banking sources. Alok Infrastructure’s SPV, which is receiving the JP Morgan funding, will develop a realty project at a prime location in Mumbai. Alok Infra owns land at several prime locations in Mumbai, some of which it bought in high-profile transactions in the past one year. Alok Infrastructure had been in negotiations with some private equity players to offload equity in the main company. A falling stock market and a sluggish realty sector of late has, however, brought down the valuation of realty firms forcing Alok Infra, as many other realty companies, to go for investment at the project or SPV level. Alok Infra may be looking at raising more funds through private equity route for its different projects. […]
Andrew Yule may soon invite expression of interest (EoI) for divesting its 26.2% stake in Tide Water Oil — the company which owns the automobile lubricant Veedol. “The divestment process will be initiated after receiving the valuation from appointed consultants. We will prefer a company which not only offers better value but also aligns with the company’s future plans,” a senior official in the ministry of heavy industries said. The government has simultaneously initiated the process of appointing a consulting firm to undertake valuation exercise. The process is expected to be completed in two-three months. Sources said major oil companies like RIL, Total and Chevron were interested in buying the stake. […]
Five post-graduate programme (PGP) students of the Indian Institute of Management, Ahmedabad (IIM-A) have set up a Private Equity (PE) and Venture Capital (VC) club to help students get hands-on experience by involving PE/VC players from India and abroad. Unlike finance clubs run by most B-schools in the country, this club exclusively focuses on PE and VC funding. The lack of opportunities and experience in the PE and VC space led five students to set up the club called 'Leverage'. With around 50 students interested in being members, the club will be a forum for students interested in all aspects of private equity and venture capital. […]
Canara Bank, India's second largest public sector bank, is all set for an aggressive play in the venture capital business. The bank has sought the Securities and Exchange Board of India (Sebi) approval for a venture capital fund. The fund will not be sector specific. The fund will be the largest one (Rs 500 crore) from the bank, which floated a venture capital subsidiary way back in 1989. The VC arm has so far floated four funds, the total corpus of which is Rs 112 crore and has invested in around 80 companies. Senior officials of the bank confirmed that they have sought approvals from the regulatory body, after which they will be hard-selling this product to other government-owned institutions for participation. Allahabad Bank, Corporation Bank, Indian Overseas Bank, Oriental Bank of Commerce, Vijaya Bank, Andhra Bank and Small Industries Development Bank of India have earlier participated as investors in its earlier fund, the corpus of which was around Rs 60 crore. […]
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