Tata group will raise $ 1 billion with Xander

Trent, a Tata group company, which joined hands with private equity firm the Xander group Inc earlier this month, have decided to raise $1 billion for an retail real estate fund. (reports Financial Express)

Xander group, through one or more of its fund vehicles, will invest in the development of an institutional retail real estate portfolio in India in partnership with high quality Indian developers.

Trent will have anchor tenancy rights and will participate with Xander in the management of such portfolio and its growth.

Tata group’s move is in line with other big retail players like the Future group, which controls retail company Pantaloon Retail. With big players like Tata group coming into the picture, the scenario is becoming competitive in retail real estate.

Wachovia Corporation invests $ 57 million in Vipul Ltd

Wachovia Corporation has invested in Vipul Ltd. through its Company “WDC Ventures Ltd.” WDC Ventures Ltd. It has subscribed to 14.95% equity capital of Vipul Ltd. for $ 57 million under preferential allotment. (reports moneycontrol)

“We are excited about the stake that Wachovia has taken in our company. It is a privilege for us that such a large organization has shown their confidence and has invested in our company. This capital infusion from Wachovia will help us to take up large projects in future. We thank WDC Ventures Limited for the timely support and this will allow us to grow big in the Real Estate World”, said Mr. Punit Beriwala, Managing Director, Vipul Limited, while addressing the Press Conference.

“Wachovia believes Vipul has a winning strategy in the Indian market, a strong track record of delivery and a management team with the vision and focus on execution to allow the company to grow in what has become a very competitive environment”, said Mr. Sandip Kundu, Director, Wachovia.

Centurion Bank of Punjab into Real Estate management services

Centurion Bank of Punjab forays into real estate management services. While solicitor firms will structure the property documents, the bank will provide the custodian services. The company would also act as an executor if customers desire. (reports Business Standard)

Centurion Bank of Punjab is also picking up 30 per cent stake in a proposed asset reconstruction company, International Asset Reconstruction Company (IARC). Shailendra Bhandari, managing director and CEO, CBoP, said City Union Bank was also likely to pick up 30 per cent stake in ARC, which has received the in-principle approval from the Reserve Bank of India (RBI).

 

Ansal gets nod to develop a $ 5.5 billion township

Ansal properties and infrastructure ltd. gets government approval to double the size of the ambitious township development project to 5000 acres in Lucknow.

The Ansal township, which would house 3,50,000 people, will require an investment of about Rs22,500 crore, said P.N. Misra, Ansal’s executive director, business development. Ansal’s share would be Rs6,500 crore—the rest will come from the public sector and private investors, Misra said. Ansal will fund the project through a combination of equity, debt and the sale of land. (reports Mint)

It would be interesting to see the instruments Ansal uses to fund this large project and defies the worries raised by few known investment bankers.

Kotak realty raises fund for property joint venture projects

The 350 mn $ Kotak realty fund for property joint venture projects closes next month. The Chief Investment Officer Hari Krishna, who has already invested a $100 million fund raised domestically, said the new 7-year fund would close next month. (reports Economic Times)

The unit of India’s Kotak Mahindra Bank hopes to attract pension funds and other institutional investors, mostly from Europe, with a internal rate of return target of around 25 per cent.

Credit Suisse to raise a $ 2.5 billion property fund

Property funds as an asset class are becoming popular today globally, and the latest in the string of large private equity raisings is Credit Suisse – which is planning to raise around $ 2.5 billion to invest into real estate globally. (reports Reuter)

” Among other large property funds being raised this year, is a $10 billion fund by private equity firm the Blackstone Group and a $8 billion fund by Morgan Stanley“

It would be interesting to see their global portfolio allocation and how much of fund’s money is allocated to emerging markets(especially India).

Noel Tata and Kishore Biyani join Milestone’s board

Noel Tata, the managing director of Retail major Trent and Pantaloon’s managing director have joined Milestone Capital advisors, an asset management company promoted by Ved Prakash Arya, the former chief operating officer of Pantaloon Retail, reports Hindustan times.

“Milestone Capital is launching a Rs 250 crore domestic venture capital fund, which will invest in projects in cities like Nashik, Nagpur, Coimbatore, Jaipur and Mysore where entrepreneurship is thriving. Arya, who used to manage joint venture companies in Pantaloon Retail, has now moved to a small office in the western Mumbai suburb Ville Parle with a skeletal staff.”

Arya has also roped in his IIM batchmate Arvind Bansal as his co-promoter. Arvind is the co-founder of Australian company Mission Biofuels.

HCC’s realty foray

HCC is planning to enter the realty business with an initial investment of Rs. 1000 crores, reports The Telegraph.

“S.K. Dharmadhikari, HCC’s senior vice-president (marketing and tendering), had recently said the company was executing projects worth Rs 2,000 crore. This includes nuclear plants and irrigation projects in Andhra Pradesh and Kerala. He said the company’s turnover, which stood at Rs 2,028 crore with a net profit Rs 124.8 crore last year, was expected to increase to over Rs 2,500 crore this year.”

JM financial gets active in realty space

Nimesh Kampani controlled JM financial has been pretty active in the real estate space lately with its $400 Million fund Infinite Investment management. The fund has invested close to $ 60 M in five projects according to its managing director Karthik Sarma, reports Business Standard.

The fund had focused on residential investments till now, but is now looking at commercial space too.

“The fund has entered into a co-development agreement with a Mumbai-based company to develop 30 acres of land in Powai, as a commercial-cum-residential township. It has acquired land in eight cities to set up service apartments and is building an IT park in Chennai over a 1.8 million sq ft area. ”

Incidentally, JM also has a tie up with Old Lane which recently got bought out by Citigroup.

Citigroup in talks to buy Vikram Pandit’s Old Lane

Citigroup is in talks to buy Old Lane, a hedge fund founded by Vikram Pandit, John Havens and Guru Ramkrishnan, reports Washington Post. The deal is valued at $600M, Citigroup would add $4 B of assets under management, and would make Vikram Pandit the chief executive of its alternative investment unit.

“The alternative investments unit is the smallest of Citigroup’s four main businesses, with about 875 employees. It has $49.2 billion of private equity, hedge fund, real estate and other assets, including $10.7 billion of Citigroup’s own money.

Citigroup in January closed its second private-equity fund, raising $3.3 billion. The alternative investments unit is also home to Tribeca Global Management LLC, a hedge fund business launched in 2004 that now manages about $2.5 billion.

Citigroup has not had an alternative investments chief since Michael Carpenter left in March 2006. Chief Administrative Officer Lewis Kaden has overseen the unit on an interim basis.

Last year, the unit’s profit fell 11 percent to $1.28 billion while revenue dropped 15 percent to $2.9 billion.“

Old Lane has a $ 500 M India focused private equity fund, that invests into real estate and infrastructure.

Old Lane had got into a joint venture with RR Industries to develop an IT park, RR Skyline in the Ambattur area in North Chennai. They had had invested around $45 M in that deal. The 2.2 million square feet IT Park is expected to be ready by 2007 end.