IL&FS Real Estate Fund has invested $15 million (Rs 75 crore) for a 30% stake in JB Pharma's special economic zone in Gujarat. The total cost of the project is at around Rs 160 crore, and Rs 84 crore debt has been raised from State Bank of India (SBI) and State Bank of Mysore, reports Economic Times. The SEZ has been promoted by JB Mody family, the promoters of JB Chemicals and Pharmaceuticals, and HBS Realtors. The two promoters will hold 35% each of the diluted share capital.
The SEZ will be used for the manufacturing of pharmaceutical finished formulations, active pharmaceutical ingredients (APIs) and their intermediates and to service activities related to research and development and contract manufacturing. The SEZ is also proposes to have contract manufacturing facility, which will house 10-15 industrial units of domestic and foreign companies besides JB Chemical's units. The size of the SEZ is 130 hectares and it is expected to be completed by next year.
Infrastructure Leasing and Financial Services (IL&FS) has two real estate funds. In December last year the fund announced first close of IL&FS India Realty Fund-II at $578 million, with a final close target of $750 million. Their first real estate fund was at $525 million. Some of the companies it has invested in are QVC Realty, Ansal SEZ Projects, International Recreation Parks (IRPPL) and Akruti City.