Bangalore-based Sobha Developers Ltd has bought out the entire 81 per cent stake held by its Dubai-based partner Pan Atlantic Investments in its special purpose vehicle (SPV), Sobha Developers (Pune) Pvt Ltd, for an undisclosed amount.
Currently, the SPV is executing a residential township project called Sobha Forest View, located at Hosahalli village in Bangalore. The project is spread across 13.27 acres, with the total developable area amounting to more than 1.7 million sq. ft.
Sobha Developers, backed by an investment arm of Singapore’s sovereign wealth fund Temasek, had raised an estimated $20 million from Pan Atlantic in two tranches for its project in Hosahalli. The funding was raised in the year 2008.
Incidentally, current norms require a mandatory three-year lock-in for foreign investments in the domestic real estate sector.
Earlier this year, Sobha said that it would acquire 40.5 per cent or half of the stake held by Pan Atlantic in the SPV for an undisclosed amount as the foreign partner was looking to exit the investment. Post-transaction, Sobha Developers will own 100 per cent equity of the SPV.
Sobha Developers’ scrip was up 0.9 per cent, quoting at Rs 227.3 a share at mid-day trade on Friday in a strong Mumbai market.
Last year, the promoter group of Sobha Developers had sold a small minority stake through a market deal to Aranda Investments, a unit of Singapore’s Temasek Holdings. Total promoters’ stake in Sobha stands at 60.5 per cent.
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