Orbit Corporation Limited, a Mumbai-based real estate developer, is raising Rs 165 crore from three private equity investors for a township project being developed at Mumbai metropolitan region. Called Orbit Highcity Pvt Ltd, the project is a wholly owned subsidiary of Orbit Corporation and is in high-end luxury category.
The three investors include IL&FS Trust Company Ltd, IIRF India Realty X Ltd (PE fund managed by IL&FS Investment Managers) and Moltana Holdings Ltd, the company said in its filing to the Bombay Stock Exchange. The PE investors have picked up 21.6% stake in the project against this transaction. Shahzaad Dalal, vice chairman of IL&FS Investment Managers, has joined the board of Orbit as a non-executive independent director.
Orbit Highcity is a special purpose vehicle of Orbit Corporation. The project spread across 110 acres of land and will comprise 400-500 villas for high net worth individuals. The total project cost is estimated at Rs 1,400 – Rs 1,500 crore, and the project would be completed in the next 5-6 years, according to media reports. Earlier in 2008, Orbit Highcity reportedly raised Rs 200 crore from Rodere Holdings Ltd, a Cyprus-based private equity fund.
Orbit Corporation has posted net profit of Rs 32 crore in the third quarter ended in December 31, 2009, against Rs 30 crore a year ago.