Deutsche Bank buys 25% in Lodha's SPV

In What could be one of the largest property deals in India, Deutsche Bank Singapore has picked up around 25% stake in a special purpose vehicle (SPV) owned by Mumbai-based developer Lodha Group for Rs 1,700 crore.

The SPV will set up three FDI-compliant real estate projects over 70 acres in Thane and Dahisar. The Lodha group is currently developing as many as 27 realty projects. The deal is believed to be the single-largest FDI in the real estate sector in India by a financial investor till date.

Sources said investment banking firm Trustcap was the advisor to the transaction.In a separate deal, ICICI Ventures has also picked up a 25% stake in Lodha group’s Simtools property in Thane for Rs 100 crore. Early this year, Tata group firm Voltas had sold its subsidiary Simtools to Lodha Developers. The Lodha group is now developing the property as a real estate project. The Deutsche Bank transaction is the third private equity investment in the Lodha group. Apart from Deutsche

Bank and ICICI Ventures, JP Morgan had invested Rs 274 crore in a debt-cum-equity deal in Lodha Bellissimo — a premium residential property, developed at Apollo Mills in Vile Parle, which the group acquired from National Textile Corporation.

Read more in The Economic Times article.

Tatas map realty foray, to develop land of group cos

After big ticket acquisitions in the overseas market, the $22-billion Tata group now wants to expand its presence in one of the fastest growing business spaces in India—real estate. The salt-to-telecom conglomerate plans to develop excess land owned by various group companies through the recently-floated $1-billion real estate fund under the Tata Realty and Infrastructure. The group believes the exercise will help it “unlock intrinsic value” for the benefit of the shareholders of its various group firms.

Bombay House, the group’s headquarters, is learnt to be finalising a blueprint for the new business. The group has hired KPMG to outline the commercial development of land owned the group companies. In the first phase, the group would develop the excess land owned by group companies such as Tata Consultancy Services (TCS),Voltas and Rallis India, said sources close to the development.

TCS, the Tata group’s software company, has around 250 acres of excess land spread across Pune and Hyderabad, while consumer goods company Voltas owns 25 acres in Hyderabad. Rallis India, too, owns 100 acres in the southern city.

Read more in The Economic Times article.