Delhi-based real estate firm Business Park Town Planners' Limited (BPTP), which came into limelight by bagging country's largest land deal in Noida, is planning to raise $300 million from private equity funds. BPTP is planning to raise these funds to fund its Noida deal, in which it acquired 95-acre commercial plot in Noida Sector 94 at a price of Rs 1.3 lakh per sq mtr, totalling more than Rs 5,000 crore. The firm is already in talks with some PE players.
BPTP is ready to sell stake in the company itself or in a special purpose vehicle of Noida project, reports Mint. But raising $300 million would be a challenging task for BPTP. The realty markets in India gave hit a new bottom with realty major like DLF, Unitech and Omaxe stocks trading more than 6% down. Yesterday BSE's realty index closed down by 8%.
Also with global credit crisis taking their worst turn this week it would be tough for BPTP to raise equity from US banks which it has been approaching till now. In July this year BPTP sold 4% stake to JPMorgan Chase for Rs 250 crore, a deal valuing the entity at Rs 6,250 crore. BPTP paid the first instalment of Rs 1,296 crore for the Noida land purchase in July, which got delayed and the company had to add interest of 14% to payment of Rs 1,250 crore. The balance for the land has to be paid over eight years, in six-monthly instalments.
BPTP's SEZ projects have also attracted interest from private equity players. Citigroup Property Investors has also acquired a 40% stake in each of the four special economic zones (SEZ) being developed by BPTP for Rs 640 crore last year. Merrill Lynch (which has been acquired by BoA) had also picked up stake in BPTP's IT Park in Gurgaon for Rs 112 crore.
BPTP also has a debt of around Rs 900 crore. If the company does not get the requisite funds through equity then it will have to resort to debt, which is very expensive in nowdays. BPTP plans to replicate the likes of such as Canary Wharf of London, More London and Roppongi Hills, Tokyo for its Noida project. BPTP plans to build 45 office buildings, 2 million sq ft of retail space and two hotels with a combined capacity of 550 rooms at its Noida site.