Indiabulls to raise $600 mn for power projects

The QIP is expected to be a precursor to the IPO. Property developer Indiabulls Real Estate (IBREL) today said its board had approved a plan to raise $600 million (Rs 3,000 crore) through qualified institutional placement (QIP) of securities.

Investment banking sources said the company was expected to use the QIP proceeds to fund its power projects, mainly a 1,320-megawatt project planned in Amaravati in Maharashtra.
The QIP was expected to be a precursor to the initial public issue (IPO) being planned by the company, sources said.

The company had called an extraordinary general meeting on May 18 to seek shareholder nod, the company said in a statement to the Bombay Stock Exchange today. Gagan Banga, spokesperson for the Indiabulls group, said: “It is just an enabling provision to be able to raise equity or debt at an appropriate time. As management, we want to take shareholder approval to raise funds.”

Indiabulls Power Services had raised Rs 1,600 crore last year from LN Mittal and Farallon Capital by divesting 28.6 per cent equity to pursue its plans in the power sector. The company plans to build two mega thermal power plants in Maharashtra with an aggregate capacity of 3,960 Mw. It also has a memorandum of understanding with the government of Arunachal Pradesh to construct four medium-sized hydro electric projects in the state.

Indiabulls Power Generation Ltd (IPGL) has plans to set up a pit-head coal-fired Bhaiyathan thermal power project in Chhattisgarh. Indiabulls Power Services had won the bid for the 1,600 Mw Bhaiyathan project and a 350-million tonne coal block in Chhattisgarh, defeating ten leading power producers, including Reliance Power and Tata Power.

Source: Business Standard

HDFC fund eyes investment in Puravankara unit

HDFC’s real estate fund is understood to be in advanced stages of investing around Rs 200 crore in a low-cost housing project being developed by the Bangalore-based Puravankara Projects. Puravankara Projects is executing the low cost housing project through a wholly-owned subsidiary Provident Housing & Infrastructure, set up last year. Investment banking sources indicate that HDFC is carrying out a due diligence of the project and the investment is likely to be funnelled into a special purpose vehicle floated by Provident for a 4,500 flats project in Bangalore. Provident is expected to launch the first phase of the project this quarter. The company is rolling out its Bangalore project after a relatively decent success it met with its low-cost housing project in Chennai. The company was able to sell close to 700 flats within a week of its launch. With these two projects, Provident is expected to roll out 6,000 houses in Bangalore and Chennai.Provident Housing during August 2008 had envisaged an investment of Rs 8,000 crore over five years and company officials maintained they are not going slow on the project. Provident is also looking to enter Mysore and Kochi markets at a later stage and is looking to acquire 200 acres for the expansion at a cost of around Rs 2-3 crore per acre.The company already has 70 acres and is looking at a total land bank of 550 acres in all for the project which will see the roll-out of close to 65,000 homes sized 750-1,000 sq feet. The houses will be priced between Rs 12 lakh and Rs 20 lakh.

Unitech on assets sale spree, sells Gurgaon hotel

Unitech Ltd, the country’s second largest developer, on Friday said it has sold out a hotel in Gurgaon for Rs231 crore and is in advance stages of talks for selling out an office complex in the national capital.
The company has also signed memorandum of understandings (MoUs) for sale of school plots in Gurgaon and another realty project in Kochi.
In a presentation to the investors, Unitech said that Marriott Courtyard hotel, comprising 199 rooms, in Gurgaon has been sold out for Rs231 crore to a high networth individual based out of Delhi. Unitech, which raised $325 million to retire part of its Rs8,400 crore debt, plans to sell four more hotels in Noida, Kolkata and Gurgaon within six months. It is also expecting “induction of private equity at project level”. The company is also expecting to close a deal to sell out its Saket office complex, comprising 2.2 lakh sq ft, in the current quarter. As part of its strategy to deal with the slowdown in the realty sector, Unitech is monetising its non-core assets by “deleveraging through sale of assets like hotels, offices and infusion of private equity at individual project level”. The sale of non-core assets are expected to contribute to cash flow of the company. It said that its sales have dipped to an all-time low because of slowdown in property market.

Och-Ziff Capital Management, Orient Global and Sandstone Capital invests in Unitech QIP

India's second-biggest real estate developer Unitech Ltd has raised $325 million through qualified institutional placement (QIP) issue. The funds have been raised by the real estate major to retire part of its over Rs 8,900 crore debt and strengthen the balance sheet.
The investors in the QIP include private equity hedge fund players like Och-Ziff Capital Management, Orient Global and Sandstone Capital, reports Business Standard. Other investors include HSBC and Prudential. Around 90% of the issue has been lapped up by overseasinstitutional investors, while the rest has been bought by domestic institutional investors.
The holdings of promoter Chandra family would fall to 51% after the QIP from 64%. The QIP has been issued at a price of Rs 38.50 per hare. Unitech was trading at Rs 51.5 today at 1 pm, reaching a days high of Rs 54.2. The deal is being touted as the largest QIP in realestate space and was advised by UBS AG's India unit and IDFC-SSKI Securities Ltd.
This is also the first QIP issue since market regulator SEBI allowed firms to fix the price based on the average price of two weeks. Earlier the period of average price calculation was 6 months. Theissue will reduce the debt to equity ratio of Unitech from 2.4 as of December 2008 to 1.4.

Top european fund likely to invest Rs300 crores in Sobha developers

Redevco, one of Europe’s largest real estate investment and development firms, with a $10 billion portfolio, is understood to be looking at investing around Rs 300 crore in various projects of Bangalore-based Sobha Developers. Redevco, part of the diversified Cafro Holdings, which is into private equity, retail, financial services and renewable energy, in addition to real estate development, set up office in India in late 2008. If the discussions with Sobha fructify, it will be its first investment in India. Investment banking sources indicated that Redevco has had initial discussions with the management of Sobha Developers, which is mired in debt like many of its peers. The investment, if it materialises, is expected to be tied up by September 2009, they say. Private equity investments into Indian real estate have been slowing over the past three quarters and this deal is expected to be a major one. While Redevco said it had nothing to comment, Sobha has been maintaining that it is in talks with various funds and nothing has been finalised. Over the past two quarters, Sobha has been aggressively looking at three options to reduce its debt burden of close to Rs 1,900 crore, a leverage of 1.6 times. The company, which has Infosys as one of its major clients, is looking to raise around Rs 850 crore by selling around 200 acres of its 3,000 acre land bank, offloading up to 49 percent stake through special purpose vehicles and to offload up to 25 percent stake at the enterprise level. Sobha is understood to have identified around 150 acres of land on which projects can be implemented through special purpose vehicles by divesting stakes. The company is also engaged with around 12 banks and financial institutions to restructure around Rs 850 crore of debt that will be due for payment during the next 18 months. Banking sources indicate Sobha has been able to get a nod for a part of that sum and talks are also on with mutual funds to roll over Rs 350 crore of debt.

DLF cannot raise money through new equity offering

Promoters of the company are holding more than 88% of the common stock. However they don't have option to raise money through equity. According to section 77A of the Company Act (buy-back provisions), a company buying back its own shares is prohibited from making further issue of shares (for six months) following the completion of buyback. According to notification dated 15th October, 2008, the company is expected to complete the buy-back process by July 9, 2009. This efectively means that DLF cannot raise money through equity markets untill January 2010.

This is not in favor of DLF especially during (1) times of renewed optimism in equity markets and (2) when peers like Unitech and Sohba are looking to aggresively reduce their balance-sheet leverage by offering additional stock.

No wonder DLF has approached the government to surrender five of its nine IT-ITeS notified special economic zones (SEZ), according to a PTI report quoting a senior Commerce Ministry official. As per the SEZ Act, the tax-free enclaves cannot be surrendered once they become operational. DLF, however, has not started work on the five SEZs that it wants to surrender. Its nine notified SEZs are located in various states. According to official data, the land bank of DLF's nine notified SEZs include 10.61 hectares near Hyderabad, 10.12 hectares in Gandhinagar, 12.06 hectares and 10.73 hectares in Gurgaon, 10.24 hectares in Sonepat, 10.33 hectares in Pune, 10.23 hectares in Bhubaneswar, 13.29 hectares in Kanchipuram and 10.48 hectares in Kolkata. It is not clear which SEZs are now sought to be cancelled.

Furthermore, recent press reports indicate that the firm has decided to shelve plans of its ambitious hotel (sells saket hotel for Rs55 crores) and wind power projects (refer to link http://mergers-in-india.blogspot.com/2009/03/dlf-to-sell-its-wind-power-business.html) for cash constraints

Capital raising activity picks up in real estate

The risk appetite is back! otherwise how could we see real estate companies/REITs gobble up a few billion dollars in capital raising over the last 2 weeks- Prologis, a warehousing REIT has raised $1 billion in stock offering.

This definitely sounds good news for Indian developers who are saddled with debt (DLF has Rs15,000 cr and Unitech has Rs8,500 cr debt) and would wish to raise capital as and when possible. Unitech has already moved fast to lap up the opportunity and is doing a road show for its $250 million QIP.

ProLogis raises $1 billion in stock offering
ProLogis PLD.N, a U.S. owner and developer of warehouses, raised $1 billion in a stock offering and plans to use the proceeds to pay down debt.
The company sold 152 million common shares for $6.60 per share in a public offering. The underwriters have a 30-day option to buy up to 22.8 million additional shares to cover over-allotments.
ProLogis shares have suffered more than most REITs because of its huge debt load. The REIT said the money will be used to reduce the balance due on the $3.8 billion of its debt that matures during the next two years. The company has vowed to reduce its debt by $2 billion in 2009. Last week Standard & Poor's Ratings Services took ProLogis off of CreditWatch. The outlook is negative.
Source: http://uk.reuters.com/article/bondsNews/idUKN0851479820090408

Kimco raises US$717 mn in stock offering; larger than expected demand
Shares of shopping center owner Kimco Realty Corp KIM.N closed up 25.5 percent on Friday after strong demand for its stock offering prompted the company to increase the number of shares offered, lifting the badly beaten real estate investment trust (REIT) sector. Kimco sold 91.5 million shares, up from the previously expected 70 million, after demand was stronger than expected. The shares were offered at $7.10 each. After the close of the market, the company said its underwriters exercised an option to sell an additional 13.725 million shares, up from the previously planned 10.5 million over-allotment,

Unitech plans $250mn QIP issue to part-pay debt
http://mergers-in-india.blogspot.com/2009/04/unitech-plans-250mn-qip-issue-to-part.html

DLF, DAL raise Rs 1,100-cr debt from HDFC Bank
http://mergers-in-india.blogspot.com/2009/04/dlf-dal-raise-rs-1100-cr-debt-from-hdfc.html

Unitech plans $250mn QIP issue to part-pay debt

Unitech Ltd, the country’s second-biggest real estate developer, plans to raise as much as $250 million (Rs 1,250 crore) through private placement of shares to qualified institutions, company officials said, to repay part of its debt of over Rs 8,000 crore.
The New Delhi-based developer plans to raise the funds by the end of this month, a company official, said declining to be identified. The company is planning to reduce Rs 1,000 crore of debt on its books by June this year. Unitech Managing Director Sanjay Chandra and key officials of the company have been in Mumbai over the past couple of days to gauge investor sentiment. The real estate company has hired UBS and IDFC as arrangers for issue. A Unitech spokesperson declined to comment. Unitech’s move comes after the developer withdrew its application with the Foreign Investment Promotion Board (FIPB) in February to raise Rs 5,000 crore from the sale of securities. A year earlier, the company planned to raise Rs 7,500 crore through a qualified institutional placement or QIP.

DLF, DAL raise Rs 1,100-cr debt from HDFC Bank

The country’s largest property firm DLF and its promoter group company DLF Assets (DAL) have together raised around Rs 1,100 crore as debt from HDFC Bank through lease rental discounting (LRD) of their properties. The fresh round of debt raising will ease cash flow at DLF.
A DLF spokesperson declined to comment on fund raising, but two senior company executives confirmed the raising of debt through LRD. LRD allows a property owner to raise funds against the expected rentals from the property in future.
Privately held DAL has raised around Rs 800 crore while DLF has raised the rest. The fresh debt will help DAL pay DLF for the properties it had earlier purchased. As of December 2008, DAL owed Rs 5,400 crore to DLF.
DLF had earlier raised over Rs 3,000 crore in debt from Punjab National Bank (PNB), Life Insurance Corporation (LIC), State Bank of India (SBI) and Bank of India (BoI) between December and February, mainly to repay short-term debt.
DLF’s impressive sales and profit figures in the past several quarters were significantly based on its transactions with DAL, a company floated by DLF’s promoter KP Singh. Property sales to DAL contributed 43.5% to revenues and 35% of DLF’s profit before tax for the December 2008 quarter.
DAL, which has attracted investments from the US hedge fund DE Shaw ($400 million) and UK-based Symphony Capital (estimated $650 million), was originally proposed to be listed on the Singapore Stock Exchange, as a real estate investment trust. The global economic downturn, however, forced DLF to change its plan last year, and the company has since been trying to raise equity in DAL through private placement.
While announcing the December quarter earnings, DLF vice-chairman Rajiv Singh had said that DAL will raise around Rs 2,000 crore through private equity deals. He said that DAL would raise the same amount through lease rental discounting, if equity deals didn’t materialise.
Market analysts see the rising receivables from DAL, as the single-biggest concern for DLF. Meanwhile, DE Shaw is also looking at exiting its investment in DAL and any loss to it on account of a fall in market value of DAL has to be compensated by DLF promoters. As per JP Morgan’s estimates, DAL’s market value has fallen to $1.5 billion from $2.2 billion in 2007.
In view of this, DLF is weighing several options aimed at extinguishing receivables from DAL and help DE Shaw exit DAL.
First is to let DAL raise funds through LRD and pass that on to DLF, which would then use the money to buy DE Shaw’s investment in DAL.
Second option is to convert entire receivables into equity in DAL. This would mean DLF picking a majority stake in DAL. “DLF could look to buy a part stake in DAL at some stage, to provide a one-time resolution of balance sheet debtors. This could be done through converting outstanding debtors on balance sheet to an equivalent stake at an appropriate cap rate,” said JP Morgan in a recent report.
Third option being discussed by DLF management is to merge DAL with itself. This may probably require DLF to raise debt to buy DE Shaw’s investment in DAL, following which DAL will be merged with DLF. The merger may entail DLF issuing convertible bonds to Symphony Capital. DLF can’t issue fresh shares to Symphony, a foreign investor, as the realty company is also executing many non-FDI compliant projects.

Source: http://economictimes.indiatimes.com/News-/DLF-DAL-raise-Rs-1100-cr-debt-from-HDFC-Bank/articleshow/4382390.cms

Bennett Coleman To Up Stake In Videocon & Real Estate Co MVL

Bennett Coleman & Company Ltd (BCCL) is hiking its stake in consumer durable and energy firm Videocon Industries. The additional stake buy is valued at Rs 200 crore. The media firm which strikes ad-for-equity deals with small and mid sized firms is picking 1.17 crore warrants at a price of Rs 170 per unit (82% premium to the last trading price of Videocon).
The warrants (convertible within 18 months), when converted into equity will hike BCCL’s stake in Videocon from 1% currently to 5.7%.
BCCL had originally picked this 1% odd stake in late 2005 for around Rs 100 crore. With the warrants issue it would have invested(or rather posted Videocon ads on its media publications and channels) around Rs 300 crore at an average acquisition cost of Rs 214/share.
The latest deal can be seen as an averaging strategy for BCCL which had initially invested at a price of Rs 430/share three and half years back. Incidentally Rs 431 is the one year high price of the scrip which is now trading at Rs 93, a value erosion of around 80% for BCCL on its initial transaction.
MORE AVERAGING?
BCCL is also likely to be pick additional stake in realty firm MVL (which was demerged from consumer electronics firm Media Video and got listed last year). MVL board is meeting next week to consider the proposal to issue optional zero coupon convertible warrants/ zero coupon fully convertible unsecured debentures on preferential basis to BCCL and to Dainik Bhaskar Group.
BCCL already holds 3.35% in MVL which is a north India focused real estate developer. This stake is valued at Rs 11 crore nearly half of what it was in June 2008.
AD-FOR-EQUITY STRATEGY A MIXED BAG!
BCCL which has been very aggressive in striking deals through its private treaties unit over the last 5-6 years has burnt its fingers when markets crashed (in January 2008) before its ad-for-equity investments in various companies matured and the company could encash on it. The media giant which was also banking on pre IPO transactions is also facing exit problem in companies which were lined up for IPOs but couldn’t takeoff due to the state of the markets.
Last December, BCCL made a partial exit from jewellery maker Rajesh Exports after taking 20% haircut. In 2007 it had exited its investment in Deccan Aviation (now Kingfisher Airlines) when UB Group acquired stake in the low cost airline.
As against Deccan Aviation where it had exited at a profit after completion of one year lock-in period for its pre IPO transaction, BCCL made a loss in case of Rajesh Exports. At one time however BCCL was sitting on almost 7x profits in Rajesh Exports when the bull run was at its peak but it couldn’t cash out as it had a three year lock-in in case of the jewellery firm.
BUT COULD HAVE POCKETED AROUND RS 300 CRORE FROM HDFC BANK LAST QUARTER
In the previous quarter, when markets crashed in October-November post Lehman Bros bankruptcy, BCCL also appears to have sold shares of one of its early portfolio companies HDFC Bank. The media firm which had picked stake in the second largest private lender nine years ago as a result of sale of Times Bank to HDFC Bank, held around 2% stake in HDFC Bank as of September 2008. It had been maintaining this holding for more than eight years.
Its holding came down by around 0.8% during the previous quarter to 1.26% as of December end. Given the average share price of HDFC Bank during the quarter, BCCL could have pocketed somewhere around Rs 300 crore out of the partial exit from the bank. This surely was a profitable deal as HDFC Bank’s share price has moved up close to four times over the last nine years. BCCL still holds 1.26% stake in HDFC Bank which is valued at Rs 555 crore($108 million) in the market.

DLF to sell its wind power business

Sun Pharmaceuticals Industries Ltd said the mediation to resolve its dispute with Israel&aposs Taro Pharmaceutical on the aborted merger of the two firms has failed. The mediation, as recommended by the Supreme Court of Israel earlier, was unsuccessful and no agreement was reached, Sun said in a communique to the Bombay Stock Exchange, adding it had informed the court on the development. "The company (Sun) is now awaiting a decision of the Supreme Court of Israel, "it added. Sun and Taro Pharma have been locked in a legal dispute over the former&aposs proposed USD 454 million takeover of the latter. The two pharma companies had signed a merger agreement in May 2007. Taro terminated the agreement in May last year, saying that the merger was not approved by its shareholders and that the price of USD 7.75 per share offered by Sun was not enough.

Sandstone capita increases its exposure to India - invests in Phoenix and PSL

Hedge funds joined in on the bull rally as the country’s bellwether index breaches the 10K mark on strong global cues. Sandstone Capital, an India focused hedge fund with $1 billion capital under management, picked up stakes in Phoenix Mills and PSL Ltd from open market on Thursday. Sandstone has picked up a little more than 2% stake in Atul Ruia-promoted real estate developer Phoenix Mills for Rs 18.3 crore. Sandstone also picked up a 1.53% stake in PSL Ltd for Rs 4.23 crore. PSL Ltd is involved in manufacturing and coating of pipes for transporting hydrocarbon products, water products, and steel structural applications. The company has been promoted by Punj family and claims to be largest manufacturer of high grade large diameter Helical Submerged Arc Welded (HSAW) pipes in India. Present shareholders of Phoenix Mills include Americop Ventures, New Vernon, Deutsche Securities, Kotak Mahindra, among others. Phoenix Mills raised Rs 1,300 crore from German real estate fund MPC Synergy for its various projects in August last year. Trafelet Company was another hedge fund busy in the market, but it was selling its holding in various companies. The hedge fund sold its holdings in various companies like Central Bank of India, TVS Motor Company, Jagaran Prakash, and JK Lakshmi Cement to Morgan Stanley Mauritius. Sandstone has made a few private equity investments in the country. It's last investment was in Hyderabad based SKS Microfinance, for which it was the lead investor in a $75 million round. Its other investments include optical networking product company Tejas Networks and local search firm Guruji.

DLF eyes minority stake in DAL to aid REIT listing

DLF is considering picking up minority stake in DLF Assets Limited (DAL), reports CNBC-TV18 quoting sources. This will help DLF Assets in their plans for real estate investment trust (REIT) listing plan and DLF will be its sponsor for the same. This move may also be aimed at reducing DAL’s Rs 5,000 crore receivables to DLF.
CNBC-TV18 also learns that DAL has been trying to raise USD 450 million from private equity investors since July. The deal, supposed to close by the end of this financial year, is likely to be delayed till April.

Some good news though for DLF Assets Limited as well as the shareholders of DLF is that other than 9.5 million squre feet that will be delivered to DAL by the end of this year, they are securitizing rent and hopefully raising about Rs 2,000 crore from three banks. So that should also help bring down receivables.

Telenor's Unitech Deal Finalised; To Get 67.25% Instead of 60%

Norway-headquartered telecom major Telenor will now get a 67.25% stake in Unitech Wireless as against the earlier agreed 60% stake. In October this year Telenor announced its deal to buy a 60% stake in Unitech for Rs 6,120 crore. The additional stake is being picked up for the same price. Telenor has said in its statement :
"While Telenor's initial investment under the agreement will continue to be the previously agreed INR 61.2 billion (approx. USD 1.2 billion), it has been agreed that Telenor, after this investment, would be holding 67.25% in Unitech Wireless."

The company will pick up a 33.5% stake for Rs 1,260 crore in the first stage of the transaction. The deal will be completed in four stages. The transaction is still subject to regulatory approvals, however, a statement from Telenor said that the closing formalities have been finalised.
Telenor is the world’s seventh largest telecom firm by customers and Norway government owns a 54% stake in the firm.

The deal, which was expected to be completed in December, got delayed as Telenor took time to arrange funds. Telenor was initially planning a rights issue to fund the deal which it later scrapped. It is funding the deal through a combination of cash flow and additional debt.Unitech Telenor last month entered into a tower sharing agreement with Tata-Quippo combine. Unitech Wireless has licences to operate in all 22 telecom circles.

Among the new telecom entrants, Unitech is the only player that has sold out a majority stake to a foreign telco. Other deals involving new telcos include Swan selling 45% stake to Etisalat and S Tel selling 49% to Bahrain Telecom. Datacom is yet to decide on a foreign partner

Mukesh fund eyes 44% in Pondy project

Mukesh Ambani-backed Urban Infrastructure Opportunities Fund (UIOF), which is managed by senior Ambani associate Anand Jain, is expected to pick up 44% stake in Pondicherry Fashion City project for around Rs 200 crore.

Sources said UIOF has emerged as the preferred investor for the Pondicherry SEZ Company (PSEZCo) in which the state government and two other private promoters will hold the remaining stake. Others who had shown interest in the Rs 3,700-crore project included Warburg Pincus, Goldman Sachs and IDFC, sources added.

UIOF has already raised over Rs 3,200 crore. The project coming up on a 993-acre land in South Pondicherry will offer manufacturing, design, education, warehousing, exhibition and IT-backed ventures for apparel and other fashion sectors. The project is conceived as an integrated fashion township offering manufacturing, exhibition and logistics support to the global industry.

(Source: Economic Times)

DLF to buy DCM Shriram mill land for Rs 1,600 cr

Real estate major DLF is set to close the Swatantra Bharat Mills (SBM) real estate deal with DCM Shriram Consolidated (DSCL) for over Rs 1,600 crore on Thursday. This will be the largest private sector land deal in the country and will give DLF access to about 38 acres of prime land, at a distance of just about 4-5 km from the capital’s central business district, Connaught Place.

Interestingly, the company had bought about 25 acres of land contiguous to the SBM plot in 2005. DLF already has an in-principle approval to develop an IT SEZ on this land.

Earlier this year, the company acquired another 2 acres in the same locality.

With the acquisition of SBM’s 38 acres, DLF will have a 65-acre contiguous landbank in Delhi. If the real estate major goes for an integrated township on this land, it will be the largest such project inside a city.

Also, this will probably be the first integrated township of its kind, combining an IT SEZ with a massive housing supply for those working in the SEZ.

(Source:Economic Times )

Foreign PEs picks 24% in Phoenix Mills

Leading private equity funds like Barclays Capital, Citigroup, HSBC Financial and DB Fund Mauritius, along with a host of overseas real estate funds, Alpine Capital and Bluerich Fund, have collectively acquired a 24% stake in Atul Ruia-promoted Phoenix Mills for Rs 1,300 crore.

The funds have picked up equity through a mix of preferential allotment and qualified institutional placement (QIP). Six funds including Barclays Capital, Citigroup, HSBC Financial, DB Fund Mauritius, Rhodes Diversified, DWS Invest Bric Plus and Americorp Ventures acquired 7% stake in Phoenix Mills for Rs 330 crore through preferential allotment while the real estate funds and other private equity funds picked up 18% for Rs 980 crore.

Riding on the success of ‘High Street Phoenix’ in Mumbai, the company has floated a new retail model — Market Cities.
Market Cities are already present in Bangalore, Chennai, Pune and Mumbai while five more are coming up.

Currently, Phoenix Mills holds 75% stake in Atlas Hospitality while the remaining is with the promoters. Market City is a city-centric concept developed by Phoenix. These are large-sized mixed format retail developments of approximately 2 million sq ft.

Phoenix intends to set up about 10 Market Cities across metros and relatively smaller retail format developments of about 1 million sq ft in tier II cities across India.

(Source: Economic Times )

Tishman, ICICI Vent JV to raise 2nd realty fund

TSI Ventures, a Tishman Speyer and ICICI Ventures joint venture, may look at raising resources from the overseas markets for setting up a second realty development fund for building office and residential space in India.

On its own part, ICICI Ventures may be looking at raising up to $5 billion from global markets by 2012. TSI Ventures’ mandate is to develop properties with cumulative asset value of over $2 billion over the next five years.

(Source:Economic Times)

Conference:Real Estate Structured Finance & Investment, Asia Pacific 2007

Real Estate Structured Finance & Investment

Date: 19 July, 2007
Location: Hyatt Regency, Mumbai, India

India's real estate market has been on the surge for the past 5 years. So far investments into India real estate have been accessible via direct investments or long-only funds.

In today's markets, the search for cheaper sources of funding, together with higher yields for investors across regions, has propelled the development of more efficient funding structures. In India where we are currently observing a bullish real estate market, it becomes ever moreimportant to be familiar with the more complex funding and hedging instruments that are available to help manage the real estate cycle.

The objective of the first annual Real Estate Structure Finance and Investment (RESFI) 2007 Conference in India aims to create a high level knowledge and networking platform for industry players to learn about the latest techniques and ideas available in the international capital markets in terms of financing innovations and real estate investments. The uniqueness of RESFI stems from the focus of the event which is to meet a key ingredient lacking in many real estate conferences which market players are keen to know – funding, linking projects to investors and what are the most efficient structures available.

Realty consultant TCM in merger talks with global players

With India’s real estate sector growing fast, property consultant Trammell Crow Meghraj (TCM), which claims a 15% share in the domestic market, has initiated talks with two global players for a possible merger to expand its presence.

US-based Jones Lang LaSalle and a UK-based real estate adviser, believed to be Savills, are the two entities with which TCM is in touch for a merger or alternatively, a partnership in India, according to industry sources.

A top official of TCM claimed that they were also talking to the world’s largest commercial real estate services firm CB Richard Ellis (CBRE), but CBRE officials declined to comment.

(Source: LiveMint)