Orient Global, a Singapore based private equity fund has invested Rs 120 crore in HDIL and Indiabulls Real Estate (IRE). The investment has been done through secondary market purchase of shares. This investment from Orient comes at a time when global financial markets are bleeding, causing huge outflow of foreign funds from the Indian stock markets and the real estate prices facing increasing pressure of high borrowing costs.
Orient Global has bought the IRE’s equity stake through purchase of 56.5 lakh shares, representing 2.2% of its equity capital for Rs 70 crore through two bulk deals on NSE. The HDIL stake was also bought in a bulk deal for Rs 48.4 crore. Other investments of Orient Global include Yes bank, India Infoline, Cairn India and NIIT.
Orient Global was founded by Richard Chandler for providing capital to companies and governments from Asia and Africa to Latin America and Eastern Europe. Orient Global had announced a $100 mn Education Fund in February 2007 that focuses on education initiatives in the world’s poorest places.
Indiabulls Real Estate, a Indiabulls subsidiary has investments from Farallon Capital, Goldman Sachs, Citigroup Global Markets and LNM India Internet Ventures among others.
HDIL (Housing Development & Infrastructure Ltd) is a real estate development firm and has other investors also that include Childrens Investment Fund and Dewan Housing Finance. Last year, it was short listed for prestigious Dharavi Slum Rehabilitation projects.