Bangalore-based Sobha Developers Ltd has raised $9.2 million (Rs 50 crore) from Sun-AREA property partners (Sun-Apollo India Real Estate fund) for a FDI-compliant residential project development in Bangalore through a special purpose vehicle (SPV), Sobha Highrise Ventures Pvt Ltd.
According to Sobha, the real estate-dedicated fund will invest Rs 50 crore in the SPV and an equal amount will come in from the developer. The project involves development of a residential complex spread over 5.625 acres in Varthur Hobli, Bangalore East and will have three and four BHK apartments.
S Baaskaran, chief financial officer of the company, told VCCircle, “We intend to launch the project by Q1 of next financial year as and when we get approvals and clearances from the government.” The pure equity transaction does not provide any guaranteed returns for Sun-Apollo, said Baaskaran.
On further fund raising Baaskaran adds, “We keep talking to people for various projects, but at this time we are not talking to anybody for an investment. We found this transaction attractive and the project is on a new land which is fully paid for.”
Sobha Developers, which has given a guidance of launch of 4 million square feet for this financial year, has launched 1.25 million sq. ft. till date and looks to launch rest of the projects in coming quarters. Big launches are lined up for Q1FY14.
Sun-Apollo real estate fund has recently been in the news for filing a case against Mumbai-based realtor Rustomjee developers, where it had invested close to Rs 235 crore for an enterprise-level stake.
Earlier this year, Sun-Apollo fund, headed by Prakash Kalothia, had invested Rs 75 crore in Assotech’s residential project in Noida, where it is developing a residential project.
Sun-Apollo was developed from a strategic partnership between Sun Group, a business and investment group principally owned by the Khemka family with operations in India, Russia & eastern Europe, and AREA Property Partners, formerly known as Apollo Real Estate Advisors, an active global real estate investor and fund manager with operations in the US and Europe.
Shares of Sobha Developers closed at Rs 357. 70 apiece on the Bombay Stock Exchange, down 1.16 percent on Wednesday.
(Edited by Prem Udayabhanu)
