Ansal Properties' residential township project in will be hived off into a JV where ICICI prudential will take 40% stake for over Rs100cr through one of its investment companies.

The residential project is part of Ansal API’s township project- Aquapolis in Ghaziabad.

Aquapolis is spread over 130 acres and has a highrise residential project and commercial development. The housing project will have about 45 towers, with a total of 2,500 units.

Ansal API is bringing in investors to fast-track the completion of its projects, which were delayed due to the earlier slowing of the real estate sector. A few days ago, the company had announced its plans to raise funds through stake dilution at project level.
The company’s debt equity ratio at present is 1:1. Its land bank includes around 25 projects spread across NCR, out of which 12 are being developed through JVs.

Last year, Ansal API was in talks with Red Fort India Real Estate and Investate Realty to sell stake in 2 of its projects to raise around $100mn.

In August 2009, IPRO had acquired 10% stake in Ansal Properties for Rs 88cr by subscribing to 1.26cr preferential shares. In June 2008, HDFC Asset Management Company invested in Megapolis in Greater Noida, which was marketed as a high-tech township.

PE investments in real estate reduced considerably in the past two years as economic growth slowed. Real estate funds that invested $8.6 billion through 100 transactions in 2007, invested $6.5 billion in 2008 in 85 transactions. In the first 11 months of 2009, real estate funds invested $867 million in 20 transactions.

2010 looks like a good year for realty as a couple of deals have been announced in the recent past.

Source: BS