Kotak Realty Funds Group (KRFG) and Sun-Apollo Ventures Llc. have acquired stakes in two special purpose vehicles of Janapriya Engineers Syndicate, a firm involved in construction of affordable homes, reports Mint.
Kotak Realty has picked up 50% holding in Janapriya Projects, a SPV floated by Janapriya, coming up with an integrated township of 5 mn sq.ft over a land of 32 acres at Kapra in the outskirts of Hyderabad. The project will have a valuation of about Rs 1000 crore after it gets completed in the next 36 months.
Sun-Apollo has agreed to buy a stake of more than 65% through an investment of more than Rs 75 crore in another SPV of Janapriya —Janapriya Townships, for developing a township project at Madinaguda near Hyderabad's new international airport at Shamshabad.
KRFG belongs to the stable of Kotak Mahindra and invests out of a $800 mn (Rs3896 crore) real estate focussed fund while Sun-Apollo is a JV of the Khemka business family with Apollo Real Estate Advisors, the real estate investor having funds worth $630 mn.
Having a land bank of 120 acres in Hyderabad and Bangalore valued at Rs 656 crore, Janapriya has built 21,000 homes and at least 20 million sq. ft of residential and commercial spaces over the last two decades. Under joint development agreements, it also has an additional 100 acres of land in these two cities valued at around Rs 537 crore. Janapriya was being eyed by many private Equity firms for investments.
Early last year Sun Apollo had announced the closing of $630-million SUN-Apollo India Real Estate Fund, and this year in August, it had invested Rs 300 crore for 35-40% equity in an SPV of Amrapali Group, a real estate firm.
Recently PE firm Och Ziff had also invested Rs 270 crore in realty firm Marvel Realtors, while Nitesh Estates was another real estate firm that got private equity funding.