Citi,Warburg eye 15% in Ansal API Dadri project
Citigroup and Warburg Pincus are in talks with Sushil Ansal-promoted Ansal API to pick up a 15% stake in its Rs 13,000-crore Dadri Megapolis project.
By Rajat Guha, ET Bureau |
NEW DELHI: Citigroup and Warburg Pincus are in talks with Sushil Ansal-promoted Ansal API to pick up a 15% stake in its Rs 13,000-crore Dadri Megapolis project. Ansal is expected to get Rs 1,900 crore form the stake sale. The deal is likely to be finalised in two months.
���We are close to signing the deal with a PE player in two months. The 15% stake sale would be part of the first tranche, as we would gradually sell at least 40% of our equity in the project.��� Ansal API marketing president Kunal Banerjee said without disclosing identities of the PE firms. It is understood from company sources that Ansal API is close to finalise the deal with Citigroup and Warburg Pincus. Finally, the company would offload a total of 40% stake in 2,500 acre, high-tech city project to various PE funds.
The Megapolis, located at Dadri, would be completed in the next eight years. The project will have a sale value of Rs 26,000 crore and the total investment will be Rs 13,000 crore. Approvals for the project have already been obtained and an MoU along with a development agreement have also been signed, Mr Banerjee said.
The project would have an education city, a medicity and one 18-hole signature golf course designed by Nick Faldo, apart from polo and equestrian facilities. The township, expected to house five lakh people, is surrounded by five natural lakes to be upgraded by the company.
In the township, the company would construct four hotels in three and five star categories, comprising about 250 rooms in each hotel. It would also house five shopping malls. the company has acquired 500 acres of land from farmers to start the project, which would be developed in various phases.
Ansal has a land bank of 7,000 acres with 17 townships, 15 shopping malls and three Special Economic Zones under different stages of development across the country. The company, which is a listed real estate firm, had posted a total income of Rs 1,011.36 crore in 2007-08 with a net profit of Rs 173.51 crore.
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