INDIA BUSINESS WORLD - DECEMBER 16th - DECEMBER 31st
- 2007
FOREIGN INVESTORS BUY 15% IN SHAPOORJI SPV
After two-and-a-half years of negotiations, the Shapoorji Pallonji Group has finally struck a $290-million deal-the largest so far in the real estate space-with a clutch of foreign investors. CVC International and Government Investment Corporation of Singapore, along with others, have picked up a 15% stake in a special purpose vehicle floated by the group.
The deal, arranged by HDFC Realty, includes investments in six large FDI-compliant projects, including commercial, residential and shopping malls. The projects are located in Pune, Kolkata and Nagpur, among others.
"Some of the projects are currently under implementation, others are just about to take off. It was a complex deal because of multiple investors and its sheer size," said sources.
Shapoorji Pallonji & Company director Jimmy Parakh has confirmed that the deal has concluded. However, he refused to give any details, citing a nondisclosure agreement with investors.
Sources said the earlier plan was to create different SPVs for each project, and bring in financial investors accordingly. However, they finally settled down for a single SPV, which is holding all the 6-7 large projects, with the Shapoorji Pallonji Group holding the remaining 85%.
"Currently, there are no plans for any IPO. The SP Group has not committed any other exit route to investors either. It is ready to buy out the stake at a later stage, or the investors can sell it to outsiders," said sources.
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