Even though the Reserve Bank and the government are apprehensive about more capital flowing to the real estate sector, the deals are happening. Wachovia Corporation, a large US-based diversified financial group, has invested about Rs 234 crore or $57 million in Vipul Ltd, a Gurgaon, Haryana, based real estate group, for a 15 per cent stake. The investment has been done by Wachovia’s investment arm WDC Ventures Ltd.

Post investment, the promoter’s share in Vipul would come down to about 62 per cent. Some of the capital would be deployed in the ongoing projects, while some will go to acquiring properties. Vipul, a publicly listed company, is currently developing residential projects in Sohna Road in Gurgaon.

Wachovia’s Indian real estate investments are headed by Sandip Kundu, the firm’s Director-Real Estate Capital Markets. Besides Vipul, the firm has also made investments in six or seven unnamed firms since it set up shop in India eleven months ago. Wachovia, located in North Carolina, US, has assets worth $700 billion under management.

Posted on 04/27/07, 8:38 PM
in: Deals, Main Page, Private Equity, Real Estate
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