TOP ENROPEON FUND MAY INVEST RS 300 CR IN SOBHA DEVELOPERS

Redevco, one of Europe's largest real estate investment and development firms, with a

$10 billion portfolio, is understood to be looking at investing around Rs 300 crore in

various projects of Bangalore-based
Sobha Developers .

Redevco, part of the diversified Cafro Holdings, which is into private equity, retail,

financial services and renewable energy, in addition to
Indian real estate

have been slowing over the past three quarters and this deal is expected to be a major

one. While Redevco said it had nothing to comment, Sobha has been maintaining that it

is in talks with various funds and nothing has been finalised.

Over the past two quarters, Sobha has been aggressively looking at three options to

reduce its debt burden of close to Rs 1,900 crore, a leverage of 1.6 times.

The company, which has Infosys as one of its major clients, is looking to raise around

Rs 850 cr by selling around 200 acres of its 3,000 acre land bank, offloading up to 49

per cent stake through special purpose vehicles and to offload up to 25 per cent stake

at the enterprise level.

Sobha is understood to have identified around 150 acres of land on which projects can

be implemented through special purpose vehicles by divesting stakes.

The company is also engaged with around 12 banks and financial institutions to

restructure around Rs 850 cr of debt that will be due for payment during the next 18

months.

Banking sources indicate Sobha has been able to get a nod for a part of that sum and

talks are also on with mutual funds to roll over Rs 350 cr of debt

Courtesy:- BS dt:- 17-04-09