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Kuwait’s Hayat Invest to back XS Real Group’s residential project in Chennai

Kuwait-based Hayat Invest has signed up with Chennai-based XS Real Group to develop two residential projects in the city. XS Real Group, promoted by former Banker S G Prabhakharan, had previously joined hands with Singapore’s sovereign wealth fund GIC to develop residential projects in the suburbs of Chennai.

SG Prabhakharan, chairman, XS Real Group, said that the investment will be channelled through Hayat Investment arm, the Ariston Hayat RE Assets Investment (Mauritius) in building a residential project through a SPV named Jacaranda Properties.

Hayat has committed around $25 million for the equity component of the first two projects. It will own majority stake in the SPV, which seeks to develop a project which could generate sales worth $120 million targeting mid-segment at Siruseri, on the Old Mahabalipuram Road.

The project will have 1,400-1,500 apartments and will be launched by the end of June 2014.

This marks second such PE deal for XS Real Group. In 2005, it had roped in GIC to part fund a development of 2 million sq ft under two SPVs.

Hayat Invest Company is an Islamic investment firm based in Kuwait. Its institutional shareholders include three of the largest regional banks—Al-Rajhi Bank (K.S.A), Kuwait Finance House (Kuwait) and National Bank of Kuwait (Kuwait).

This is not the investment by Hayat Invest in India. As per its website it also has a Shariah compliant equity fund The Hayat India Equity Fund which invests in Indian listed firms. Its investment strategy revolves around picking stake in medium to large sized companies using a blended (both growth and value) investment style.

(Edited by Joby Puthuparampil Johnson)

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