|
|
Citigroup’s real estate arm is set to invest around Rs 400 crore ($100 million) in Bangalore-headquartered Golden Gate Properties for about 10% stake, sources said. The deal is expected to value the tier-II real estate firm at a little over $1 billion. This marks Citigroup’s back-to-back deals in the domestic real estate space in the last fortnight. Early last week, the global financial giant unveiled $160 million play in Delhi-based BPTP. Golden Gate is primarily into residential market with about 20,000 units under development totaling 23 million sq ft across southern cities such as Bangalore, Chennai and Hyderabad. The company also has substantial land holdings extending into emerging centres like Mysore and Mangalore. Besides, Golden Gate is believed to be foraying into SEZ and mixed use development. […]
Private equity (PE) firms are smacking their lips at the depths to which valuations of companies have plummeted from their high perch just over three months ago. But some of these firms are plagued with another problem: The climate to raise funds for investing is not at its best. The global credit crisis triggered by defaults on home loans in the US, and the looming recession in that country has sparked scepticism among pension funds, sovereign wealth funds, university endowments, family offices and others who serve as the main sources of funding for these private equity firms. “Raising funds is much tougher now. It means many more phone calls, more meetings, more effort,” says Alok Sama, founder and president of Baer Capital Partners, which is in the process of raising a $500 million fund to invest in Indian real estate and infrastructure. […]
Australian securities firm Macquarie Group Ltd., (MQBKY.PK) and state owned State Bank of India plan to raise $2 billion to invest in direct infrastructure opportunities in India. They join other global banks, including Citigroup Inc., JPMorgan Chase & Co., ICICI Bank Ltd., and the London-based 3i Group Plc in planning to raise funds for investment in India's infrastructure. Macquarie and SBI signed a memorandum of understanding to set up a company and manage the proposed fund. Macquarie, SBI and The International Finance Corporation as one of the cornerstone investor have planned to contribute a total of $450 million to start the fund. The fund, which is expected to launch by the end of June, intends to provide equity and equity-like capital for investments in roads, ports, airports and power. It will also look at investment opportunities in infrastructure-related assets and businesses. The fund will also raise further capital from both domestic and international institutional investors. […]
Real estate firm Parsvnath Developers Ltd has sold 30 percent stake in a Mumbai project to foreign funds for 1.86 bilion rupees, the company said in a statement on Thursday. Parsvnath will sell 15 percent stake each in the Kurla bus depot redevelopment project to Euronext-listed Yatra Capital and recently-launched Saffron India Real Estate Fund-I. Both are promoted by U.K.-based fund manager Saffron Asset Advisors. Yatra and Saffron have picked up the stake at land-value basis. They will also proportionately fund all future development and construction activities for the project, Parsvnath said.(Reuters) […]
Global networking major Cisco is aggressively stepping up its next phase of investments in India, further to its $100 million investment in India so far. The company is scouting the region for equity investments in media, broadband and real estate, Cisco Ventures managing director Joydeep Bose said. Of the $200-million investments in India, Cisco has already invested nearly $ 100 million and the company hopes to exhaust the next $100 million in another 18 months. Immediate on the company’s plans, is forming investment-backed alliances in India. The company already has such an alliance with Satyam in the healthcare sector and is in talk with two more companies in India aimed towards the real estate and collaborative networking space in India. “We hope to close at one such equity-backed alliance deal by the end of December this year,” Mr Bose said. Cisco would seek out investment opportunities in its areas of focus, by asking partner companies to spin off such target operations into a subsidiary, in which it could take a stake of up to 18%. […]
Dhanus Technologies Ltd., one of India's fastest growing telecommunications companies, announced their acquisition of a majority equity stake in Sreeven Infocom Pvt. Ltd, Hyderabad based IT and ITeS service provider. This acquisition comes in accordance with the company's plans to expand into E-Governance space and strengthen telematics services and BPO service offerings in India. As a part of the deal, Dhanus Technologies has taken a 60% stake in Sreeven Infocom through an additional capital infusion into this company. Assessing the acquisition, Dhanus Technologies, Vice Chairman, S. Muthukrishnan, said, “Dhanus Technologies has always strived to deliver to its customer's efficient communication solutions; by combining different technologies on a common platform. Sreeven Infocom specializes in E -Governance and BPO services and works with key corporate, Government and quasi Government organizations across the country. With this strategic investment, we expect to target these organizations and plan to expand into the E-Governance sector and support Fleetrac systems. We expect to increase Sreeven's revenue to Rs.60 Crore by the end of the fiscal 2009-10.” […]
3i Group Plc, a London-based global private equity firm, announced that it has raised $1.2 billion for the India Infrastructure Fund that will enable it to finance projects in power, ports and other core sectors with a total value of up to 5 billion dollars. Earlier, 3i Group had announced to invest USD one billion in India's infrastructure sector, and had entered into a strategic partnership with the state-owned India Infrastructure Finance Company Ltd (IIFCL) last year. The raised funds are 20 per cent higher than the target, said a company statement. […]
Venture Intelligence data spanning the last four years shows that the maximum inflow of funds occurred during the October-December quarter. This would imply that there are in-built incentives that propel PE investments during this season. May be, annual targets?But, PE players insist annual targets don’t drive them. They say investments are structured with respect to the return on investments and not any seasonality. Chrys Capital MD Sanjiv D Kaul called the pattern a mere co-incidence. Carlyle India head Shankar Narayanan said following a seasonal methodology to investments would be ‘suicidal’ for any PE investor. Mr Harish Fabiani, chairman of Americopr Group and a Madrid-based non-resident Indian who launched a $200-million India Industrial Growth Fund said there is simply no logic behind the pattern. […]
India has still not decided on regulations for sovereign wealth funds (SWF). However, existing provisions in the takeover code will be applicable to SWFs, according to Reserve Bank of India governor YV Reddy. The on-lending of foreign exchange reserves through IIFCL to Indian companies abroad will be treated as external commercial borrowings, Mr Reddy clarified. Globally, many countries have floated SWFs, which utilise a portion of their forex reserves to invest in a variety of assets in overseas markets to earn higher returns. Speaking at a session on ‘The Role of Government-owned Investment Vehicles in Global Capital Flows’ in the International Capital Markets and Emerging Markets Roundtable held in Washington DC on Monday, Mr Reddy said, “India has not yet considered regulatory initiatives, especially addressing SWFs. However, existing provisions regarding fit-and-proper or takeover code are applicable to all investors, including SWFs.” India is still at the stage of assessing the pros and cons of setting up an SWF. It is monitoring recent developments on enhancing transparency and disclosure in respect of hedge funds, private equity and SWFs, Mr Reddy said. […]
India-focused private equity and venture capital funds raised $7 billion (Rs 27,958 crore) in 2007, excluding real estate, last year. They had garnered a similar amount in the corresponding previous year, according to data from Venture Intelligence, a venture capital research company. Some noted VCs raised funds last year. Sequoia Capital notched up $300 million, Sandalwood Capital ($350 million), Matrix India Partners ($300 million), Helion Ventures ($210 million), VenturEast ($150 million) and Nexus India Capital ($100 million). […]
|
Post your messages.Please refrain from posting offensive messages. IndiaPE accepts no liability for the consequences of your reliance on these postings and messages.
|