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IndoSpace hits first close of third fund; Fortum to sell stake in India assets

23 October, 2017

Industrial real estate-focussed investment firm IndoSpace has hit the first close for its $550-million third fund at $300 million, The Economic Times reported, citing sources aware of the development.

The fund got “overwhelming response” from sovereign and pension funds and university endowments, the report quoted a source as saying.

IndoSpace is jointly owned by homegrown private equity investor Everstone Capital and Realterm Global. Realterm, which has presence across North America, Europe and India, manages about $2.5 billion across 300 properties.

In May, Canada Pension Plan Investment Board had announced plans to invest as much as $1.2 billion (Rs 7,700 crore) in a joint venture with IndoSpace to acquire and develop logistics facilities in the country.

Indospace had raised $240 million for its first fund in April 2009. It closed the second fund at $330 million in January 2014.

In another development, Finnish energy firm Fortum OYJ has given a mandate to Barclays Bank to sell a stake in its solar power assets in India, Mint reported, citing two people aware of the development.

Fortum is planning to invest around €400 million in India’s solar sector and is looking for growth capital, the report said.

Fortum India Pvt. Ltd has a solar power capacity of 215 megawatts, according to the report.

The report cited Sanjay Aggarwal, managing director at Fortum India, as saying that the company could consider roping in “financial investors” for its operating renewables assets.

Meanwhile, Hyderabad-based renewable energy firm Greenko Group is looking to acquire the 110-megawatt Chuzachen hydroelectric project of Gati Infrastructure Pvt. Ltd in Sikkim, Mint reported, citing two people aware of the development.

GE Energy Financial Services India has invested Rs 257 crore in this project, added the report.

The report cited one person as saying that Greenko’s move is part of its effort to become an integrated utility with assets across hydro, wind and solar power generation as well as transmission and distribution.

Greenko has hydropower capacity of 380 megawatt, according to its website.

Another report in the The Economic Times stated that retailer Future Group is in negotiations to buy the Indian franchise rights of British retailer WHSmith from New Delhi-based Travel News Services India Pvt. Ltd.

Citing sources aware of the development, the report said that the two parties will meet in the next three days to discuss the financial contours of the planned deal.

Future Group plans to open more WHSmith stores, particularly catering to corporate offices, after acquiring the franchise rights, the report said.

Separately, Mint reported that private equity firm BanyanTree is teaming up with Mideast Integrated Steels Ltd to bid for debt-laden Electrosteel Steels Ltd.

Electrosteel Steels is one of 12 large loan defaulters identified by the Reserve Bank of India for a resolution under the Insolvency and Bankruptcy Code.

Citing two people aware of the development, the report said that the interim resolution professional for Electrosteel appointed by the National Company Law Tribunal has also received interest from Tata Steel Ltd, Dalmia Bharat Ltd, Electrosteel Castings Ltd, Srei Infrastructure Finance Ltd and Edelweiss ARC.

The report cited Rita Singh, chairperson and managing director at Mideast, as saying that it was bidding for Electrosteel Steels and that its financial adviser was BanyanTree Capital.

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IndoSpace hits first close of third fund; Fortum to sell stake in India assets

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