Lehman Bros, Morgan Stanley eye 40% of Parsvnath SEZs
Parsvnath Developers (PDL) is learnt to be in talks with US-based global financial investors Lehman Brothers and Morgan Stanley for divesting equity in the company’s Special Economic Zones (SEZ) projects.
By Gaurie Mishra & Mayur Shekhar Jha, TNN |
NEW DELHI: Delhi-based real estate developer Parsvnath Developers (PDL) is learnt to be in talks with US-based global financial investors Lehman Brothers and Morgan Stanley for divesting equity in the company’s Special Economic Zones (SEZ) projects.
Lehman Brothers declined to comment and an e-mail sent to Morgan Stanley did not elicit a reply. PDL chairman Pradeep Jain also declined to comment.
Two of PDL’s SEZ projects in Indore and Gurgaon have already been notified. Sources say the company is looking to divest about 30-40% equity stake in both the SEZ projects to financial institutions. The deal size is expected to be in the excess of Rs 2,000 crore for both the SEZ projects put together.
The two notified SEZs will have a total developable area of about 17 million sq ft. In addition, the company also has three formally approved SEZs at Dehradun, Kochi and Hyderabad with total developable area of 11.70 million sq ft and seven SEZs with an in-principle approval.
Lehman Brothers had recently invested nearly in another notified SEZ project in Bangalore. It had invested $80 million in Bangalore-based 1,000 acre research and development SEZ — Gandhi City. IIML-the private equity arm of IL&FS, had co-invested $20 million in the SEZ, along with Lehman Brothers. The fund, however, has not made a public announcement about the investment.
Real estate as a sector has never had it so good. In the last 1-2 years, most global funds are looking at huge India exposure. Merrill Lynch forecasts that the Indian realty sector will grow from $12 billion in 2005 to $90 billion by 2015. As of now, some of the most prominent global funds that are aggressively investing in the sector include Carlyle, Blackstone, Morgan Stanley, Trikona and Warbus Pincus.
Lehman Brothers declined to comment and an e-mail sent to Morgan Stanley did not elicit a reply. PDL chairman Pradeep Jain also declined to comment.
Two of PDL’s SEZ projects in Indore and Gurgaon have already been notified. Sources say the company is looking to divest about 30-40% equity stake in both the SEZ projects to financial institutions. The deal size is expected to be in the excess of Rs 2,000 crore for both the SEZ projects put together.
The two notified SEZs will have a total developable area of about 17 million sq ft. In addition, the company also has three formally approved SEZs at Dehradun, Kochi and Hyderabad with total developable area of 11.70 million sq ft and seven SEZs with an in-principle approval.
Lehman Brothers had recently invested nearly in another notified SEZ project in Bangalore. It had invested $80 million in Bangalore-based 1,000 acre research and development SEZ — Gandhi City. IIML-the private equity arm of IL&FS, had co-invested $20 million in the SEZ, along with Lehman Brothers. The fund, however, has not made a public announcement about the investment.
Real estate as a sector has never had it so good. In the last 1-2 years, most global funds are looking at huge India exposure. Merrill Lynch forecasts that the Indian realty sector will grow from $12 billion in 2005 to $90 billion by 2015. As of now, some of the most prominent global funds that are aggressively investing in the sector include Carlyle, Blackstone, Morgan Stanley, Trikona and Warbus Pincus.
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