PE Players See an Exit Season
It is exit season for private equity investors in the realty space. With a smart recovery in the Indian realty sector and an impressive lineup of public offers, investors are getting to see the face of money. Significantly, investors at the project or SPV level are up for a busy exit season given the increasing demand for residential and commercial space.
Consider this: Red Fort is exiting more than five deals. In the residential space, Red Fort has sold over 5,000 apartments in Tier 1 cities such as Chennai, Bangalore, Delhi, NCR. Kotak Realty Funds Group is planning complete exits from two of its IT Park investments – Peepal Tree Properties, a green field IT park building in Mumbai and Green Boulevard, a project in Noida IT Park, Delhi. Indiareit Fund Advisors is eyeing five partial exits this year from its large portfolio of residential projects. It plans to exit from Neptune Developers, and other projects such as Skyline (Bangalore), Samira (Mumbai) and SSPDL Northwood (Hyderabad) this year. It made a partial exit of Rs 49 crore from Aristo (Mumbai) in April, where it invested Rs 150 crore.
Data shows, 2010 witnessed exits deals such as CVCI-Emaar MGF Land Ltd ($60 million), WDC Ventures-Vijay Associates Constructions Pvt. Ltd. ($40 million), Symphony Capital Partners-DLF Assets Ltd ($694 million), Siva Ventures Ltd-Aamby Valley Ltd ($323 million).
DE Shaw Composite Investments (Mauritius) Ltd. exited from DLF Assets Pvt. Ltd. for $470 million (Rs 2200 crore) by selling its entire stake to Rajiv Singh, Vice Chairman, DLF last year.
Action in “Infrastructure Enablers”
With infrastructure slated for high growth and PE funds, which cannot make investments in core infrastructure owing to their “growth equity” nature, a lot of action is seen in the ancillary or “infrastructure enabler” space.
Recently, Clearwater Capital hiked its stake in Diamond Cables by purchasing 2.2% stake for around Rs 10 crore through the secondary market which took its total holding to 13.77%. Originally an electrical products maker, the company diversified into a manufacturer of power transmission equipment and turnkey services provider (EPC).
NYLIM Jacob Ballas India Fund III, LLC, a Mauritius-based private equity vehicle dedicated to India, infused Rs 152 crore into SEW Infrastructure Ltd, an engineering, procurement and construction (EPC) company in Hyderabad.
Axis Private Equity already has investments of Rs 126 crore in Delhi-based railway line manufacturer Harish Chandra India Ltd (HCIL) and Rs 60 crore in Vishwa Infrastructures and Services, which executes projects in the water supply and sanitation sector.