Realty firm Ansal API is looking at a fund infusion of about Rs 500 crore from a host of private equity investors, including IL&FS Investment Managers and Red Fort Capital, for its ongoing construction work in north India.
The company has already raised as much as Rs 200 crore from Red Fort Capital, an India-focused private equity firm, that invests in the real estate sector. It has completed over 12 investments in the country across residential, commercial, logistics and hospitality assets.
The money raised from Red Fort Capital will be used to build a residential township in Gurgaon, while funds raised from other investors will help the realtor develop a township in Sushant Golf City in Lucknow, said a person familiar with the development.
Anil Kumar, CEO and Deputy MD at Ansal API, said the firm is looking at various options to raise funds at project level as part of its strategy to fast track completion of its projects. This in effect means that the realty firm and the private equity investors will float separate special purpose vehicles to fund these projects. “We have finalized with one of the private equity funds, but we do not like to comment on any other deals at this point of time,” he added.
Subhash Bedi, MD at Red Fort Capital, confirmed the development, while an email sent to IL&FS Investment Managers did not elicit any response. Established in 1989, IL&FS is one of the oldest private equity fund managers in the country with over $3.2 billion under management.
Esencia Extension, which is slated to come up in Gurgaon for which the builder raised money from Red Fort Capital, will span over 108 acres. It will be ready for possession in 2014. Ansal launched Esencia in mid 2010.
The real estate sector in India was among the biggest casualties of the global economic downturn as buyers kept away from the market and banks became skittish about lending. But with recovery gathering pace, scores of realty firms are trying to mop up funds for expansion plans as buyers are slowly returning. In one of the largest private equity deals last year, IL&FS Milestone Fund picked up a 74% stake for Rs 575 crore in HCC Real Estate’s 247 Park, a corporate park located in Mumbai’s Vikhroli (West).
