Provogue (India) Ltd has restructured its deal with Triangle Real Estate India Fund (co-promoted by ICS Realty Group and Old Mutual Investment Group Property Investments) by pruning its transaction size while giving a larger stake to the investor in the projects being developed by its real estate arm Prozone Enterprises.
The apparel retailer, that is backed by ace investor Rakesh Jhunjhunwala, through Prozone Enterprises Pvt Ltd, has signed a restructured deal where Triangle Real Estate India Fund is investing Rs 306 crore ($65 million) for a 35% stake in three of its project SPVs viz. Aurangabad, Nagpur and Coimbatore that values the projects at Rs 865 crore.
In the earlier deal announced early 2008, Triangle was to pick 27% stake in four projects– Aurangabad, Indore, Nagpur and Jaipur to build retail-centric mixed-use development projects for Rs 457 crore valuing the projects at Rs 1,692 crore. These projects were spread over approximately 16 million sq. ft, twice the space it will develop now.
In the new deal, the company attributing it to the ‘change in the market environment’ has decided not to develop retail in Indore and Jaipur. These locations have been replaced with a separate project in Coimbatore. The company will now be developing over 8 m sq ft across the three projects related to retail, commercial, residential & hospitality.
Another investor in this same subsidiary was LTG International (promoted by Lewis Trust Group, an investment company that operates retail stores, real estate, wealth management business and hotels) that had announced an investment of Rs 56.97 crore ($12.16 million) picking around 3.56% stake in the process two years ago.
Prozone Enterprises itself is a joint venture with Liberty International and has a strategy to invest mainly in tier-II cities in India. Liberty had picked 15% in Prozone four years ago for Rs 202 crore valuing it at Rs 1,346 crore. One of the 20 largest Real Estate Investment Trust’s (REIT) in the world, Liberty International is a former UK FTSE 100 listed property company that was rechristened Capital Shopping Centres Group plc after a demerger of one of its arms dealing with residential and commercial property early this year.