IL&FS PE exits Indiabulls’ Worli project
Photo Credit: Reuters

Mumbai-based public listed developer Indiabulls Real Estate Company Pvt. Ltd has bought back the entire 10.08% stake held by IL&FS Fund in Indiabulls Infraestate Ltd for Rs 358.44 crore ($55.53 million).

The Indiabulls subsidiary is developing a premium integrated residential project, Indiabulls Blu, comprising four residential towers and two office towers in Worli, Mumbai.

ILFS Fund had pumped in about Rs 250 crore in the project in tranches, starting in 2012 with a 9.3% stake in the company. It had invested through its entities IIRF India Realty XXI Ltd, Little Fairy Ltd and Vistra ITCL (India) Ltd. The investment has earned a total interest of Rs 94.85 crore, the company said in a statement.

The company said that ILL has become a wholly-owned subsidiary of Indiabulls after the acquisition.

The development comes soon after the Indiabulls promoter group entity, IBREL IBL Scheme Trust sold 3.3 crore shares of the company for Rs 662.83 crore through an open market transaction. The proceeds, it had said, would be used for meeting its funding requirements and general corporate purposes.

In December 2016, IBREL IBL held 4.25 crore shares, representing 8.89 per cent stake in the Indiabulls realty unit. The promoters had 50.35 per cent stake in the company as on March 31, 2017.

The company had also said recently that it plans to raise Rs 500 crore by issuing non- convertible debentures on a private placement basis.

The developer, which has strong presence across both residential and commercial segments, has now segregated its office development and leasing business to focus on different segments, and is considering listing prospects of its assets under the real estate investment trust (REITs).

It is currently developing 44.53 million sq ft across residential, commercial and retail segments in key markets, including Mumbai, Delhi-NCR and Chennai. It has 15 ongoing projects in India with a saleable area of 357.8 lakh sq ft, while it plans to launch new projects spread across 87.5 lakh sq ft.

According to the company website, it has a fully-paid land bank of 1,010 acres, besides 2,588 acres of SEZ land at Nashik in Maharashtra.

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