Bangalore-based Sobha Developers has bought entire equity of its joint-venture partner, Pan Atlantic Investments Limited, a Dubai-based PE investment company for Rs.98.5 crore, in one of its special purpose vehicles, Sobha Developers (Pune) Private Limited.
Before the deal, Pan Atlantic Investments Ltd held an 81 per cent stake in the company and the rest was held by Sobha.
The SPV was set up for construction and development of residential townships in India and is presently executing a 1.7 million sq ft residential project, ‘Sobha Forest View’, in South Bangalore. The project was launched in October 2010 and is in initial stages of construction.
“The company made a one-time payment to close this deal, and money was paid by combination of internal accruals and bank borrowings. The firm presently has a debt of Rs.1,300 crore,” said a company official.
The company has no other such joint venture with any foreign company for any of its projects.
The firm’s share price at BSE today saw marginal rise of 0.6 per cent to Rs.226.55.
