Bahrain-based TAIB Bank, through its real estate investment arm Acacia Real Estate, has picked up a 26 per cent stake in Anant Raj Projects for Rs 216 crore ($50.44 million).
Anant Raj Projects is the subsidiary of New Delhi-based Anant Raj Industries (ARIL), and this deal puts the valuation of the subsidiary at Rs 831 crore ($194 million), reports Economic Times. The funds raised from the transaction will be used for development of 600,000 sqft of retail space which is expected to be operational by first half of 2009. The advisors on the transaction were DTZ India, the Indian subsidiary of DTZ Holdings, and International Property Consultant. Anant Raj is involved in the ceramic tile making business.
Earlier this year TAIB Bank had picked up 49 per cent stake in Logix TechnoPark , a mid-sized IT park in Noida, for $69 million. It was also one of the lead investors in IL&FS’ Leverage India Fund, in which it contributed around $70 million in the $155 million fund.
ARIL is active in the National Capital Region and claims to have of the largest land banks in the region. It is involved in the process of building an array of Special Economic Zones (SEZs), IT Parks, Hotels, Commercial Complexes, Malls and Residential / Service Apartment. ARIL had recently formed a joint venture with Monsoon Capital, an India-focused hedge fund, for a IT park project in Haryana. The fund was planning to pick up 49.9 per cent for $43 million. Government of Singapore Investment Corporation (GIC) also formed two joint ventures with Anant Raj for hospitality and IT parks last year.
ARIL had last year raked in $167 million by selling 13.5 per cent stake to GIC, George Soros’s hedge fund Quantum and Morgan Stanley Dean Witter. It had also diluted a 7 per cent stake to Lehman Brothers, ABN Amro and HSBC Investments for $66 million in 2006.
A lot of real estate companies are now turning private equity players to raise funds as lending rates are becoming higher. JPMorgan Chase & Co is picking up 33 per cent stake in a real estate special purpose vehicle (SPV) of Alok Infrastructure for Rs 150 crore.
Yatra Capital invested $7 million for a 40 per cent stake in Jalan Intercontinental Hotels Pvt Ltd, a company that is building a 200-room business hotel in Kolkata. Unitech has also raised a $300 million fund from international markets to invest in its various real estate projects. JP Morgan Chase has also picked up 4 per cent stake in Delhi-based BPTP developers for Rs 250 crore.