SUN Apollo Ventures has acquired a 15% stake in Keystone Realtors, Mumbai based real estate developers, for Rs 300 crore, valuing the company at around Rs 2,000 crores, reports Business Standard.
SUN Apollo’s $630-million offshore fund, SUN-Apollo India Real Estate Fund will invest in the existing foreign direct investment (FDI) compliant projects of Keystone, also known as the Rustomjee group. The report adds that it will also invest in the future projects of keystone.
When contacted Sun Apollo Ventures, they refused to comment on the deal to VCCircle.
SUN Apollo Ventures is a joint venture between the Delhi based Khemka family and the US based AREA property partners. Keystone has a 250 million square feet land under development in Mumbai and its suburbs, a large part of which is in residential segment. The developer has been posting annual revenues of Rs 200 crore and is aiming at registering a 100% sales growth every year, adds the report.
The investment, according to the report, is 2009’s first one in the real estate sector. The deal comes at a time when even real estate giants like Unitech and DLF are finding it tough to survive, with the markets going through a credit crunch and the lack of liquidity. W
hile Unitech has been selling it properties to repay debts, DLF is planning to raise Rs 5,500 crore through sale of assets to support its ongoing projects, reports economic times. DLF reported a 93% decline in its profits for Q4 FY 08-09.