Indiabulls real estate looking for strategic partner for London project

Q: Company is looking for strategic partner who can buy 40% of its stake in the project in the Mayfair locality of central London.

Rakshit, Mumbai

14th October 2015

Real estate News in Mumbai

real estate

private equity

indiabulls real estate

london property of indiabulls real estate

london project

hanover square

Follow Discussion

Also see discussions for

Mumbai Real estate News Real estate News in Mumbai

Replies (3)

Hi Mithdeb,
I heard that the founder and controlling shareholder Sameer Gehlaut invested Rs 240 crore in the company through preferential shares. Gehlaut also subscribed to Rs 80 crore of convertible warrants, which if converted will result in further equity infusion of Rs 230 crore in the first half of 2016-17. Therewith, the company could sell land holdings to further deleverage.

Anirudh Patel, Mumbai

15th October 2015

Comment

Right Shrikant,
The property is tenanted and brings annual rent of 5.5 million pounds, payable by JLL. The current lease will end in 2017 and then Indiabulls Real Estate wants to convert it into a luxury residential property. International property consultant CBRE had completed the recent valuation and given the current residential and commercial market in central London.

Mritunjoy Deb,

14th October 2015

Comment

And the company has submitted a planning application to the Westminster City Council for a project comprising 41 residential apartments covering 80000 sq-ft., a 51-room hotel and 4500 sq-ft. of retail space, facing the Hanover Square. Am i right Mithdeb?

Sishir,

14th October 2015

Yes, the residential apartments will be serviced and managed by the luxury hotel in the building. The development plans expected to be reported to Westminster's planning committee this month and an approval is expected by the end of this month.

Mritunjoy Deb,

14th October 2015

The company has started talking with PE Firms, sovereign funds and family offices to sell a 40% stake in the project in the Mayfair locality of central London for around Rs 1000 crore. Negotiations for the stake sale are on and a deal is expected to be ended in a few weeks.

Mritunjoy Deb,

14th October 2015

Comment

It is also came to know that company acquired 22-23 Hanover Square, a commercial property in a central London with a winning bid of 155 million pounds for the assets and financed the transaction through internal accruals.

Shrikant Kejriwal, Mumbai

14th October 2015