Mumbai-based SUN-Apollo Ventures has picked up around 40 per cent stake in a Special Purpose Vehicle (SPV) of Noida-based Amrapali Group, a lesser known real estate group in North India. The stake has been picked up for Rs 300 crore ($75 million), according to a report in The Economic Times.
The SPV is developing a 200-acre township in Jaipur, which will have a housing, retail, commercial and IT space. The other investment of the SPV is a 15 acre high-end housing project in Noida. Both of these projects are expected to be finished in the next two-and-a-half years.
SUN-Apollo Ventures is a joint venture between Delhi-based Khemka family’s SUN group and US-based private equity fund Apollo Real Estate Advisors. Sun Group has businesses in Europe, the US and India and has interests in energy, mining, real estate, infrastructure and technology. SUN-Apollo Ventures had raised $630 million fund to invest in real estate in the country.
The venture fund had invested $196 million in Sriram Properties, which is a part of the Chennai-based Shriram group. It has also invested in Point Indu, an IT SEZ under development in Hyderabad.
The value of projects under development for Amrapali Group are Rs 8,000 crore. Apollo Real Estate Advisors is a leading international real estate investor and fund manager. It was formed in 1993, and through its multiple real estate funds and joint ventures has equity commitments totaling approximately $11 billion globally. The Apollo funds collectively have invested in over 465 transactions with an aggregate value in excess of $30 billion. It has recently announced $758 million Apollo Value Enhancement Fund VII, L.P.
More and more real estate firms are now turning to private equity investors to raise funds for their projects. Only last week Phoenix Mills Ltd announced that it plans to sell up to 30 per cent stake in its hotels arm Phoenix Hospitality Pvt Ltd to private equity investors for about $250 million. Bahrain-based TAIB Bank, through its real estate investment arm Acacia Real Estate, has picked up a 26 per cent stake in Anant Raj Projects for Rs 216 crore last week. US financial major JPMorgan Chase & Co is also picking up 33 per cent stake in a real estate special purpose vehicle (SPV) of Alok Infrastructure for Rs 150 crore. Even real estate moguls like Donald Trump don’t want to miss this opportunity, whose son Trump Jr is launching a $1 billion India realty fund.