By 14 September, 2009

BK Modi, Chairman of Singapore-based Spice Global, plans to invest around $100 million in distressed assets. He is looking at buying stakes in resorts on the Indonesian islands of Batam and Bintan.   

Modi plans to transform these two resorts into entertainment hubs for Bollywood stars and eventually add casinos in them, according to a report in Bloomberg.com. “There’s nothing near Singapore as beautiful as these two islands but they are distressed,” the report said, quoting Modi.

Post acquisition, Modi plans to upgrade the infrastructure and alter the ferry route via Singapore to attract more tourists. Modi expects over 100% return on investment from the project.

As part of the plan, Modi will invest around $20 million in a private equity fund managed by 3 Degrees to buy a stake in a resort in Bintan. He will also invest in other distressed specialists and former traders from Lehman Brothers Holdings Inc who are setting up their own shop.

The report suggests that Modi earned $434 million by selling his stake in Noida-based Spice Communications Ltd to Idea Cellular Ltd last year. Modi’s net worth is $1.5-1.6 billion and he has cash worth $700-800 million.

Spice Global, with diversified operations across manufacturing and retailing mobile phones, onshore BPO, IT systems integration, entertainment and retail real estate, has been on a buying spree. Its recent acquisitions include picking up 51% stake in Wall Street Finance a few days back and a 20% stake in Singapore Stock Exchange-listed IT company MediaRing Ltd in August 2009.

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