Bangalore-centered Embassy Group has entered into talks with JP Morgan, a global financial services group, for raising a real estate fund of Rs.500 Cr.
Embassy Group has entered into talks with the global financial services group for raising a fund for real estate development. The Indian firm plans to invest the fund of Rs.500 Cr into two real estate projects in Bangalore.
Embassy Property Developments plans to develop a top-end villa project and another residential project with IT campus. They have the plan to develop the projects on the Bangalore – Bellary Road.
Embassy Group had recently sealed a real estate transaction with Blackstone, a global private equity firm. This real estate transaction is considered as the biggest commercial transaction of India.
However the CMD of Embassy Group Mr. Jitu Virwani kept his lips closed when asked about their talks with the financial services firm. Mr. Yesh Nadkarni of JP Morgan too declined to comment on the ongoing talks. He told the media persons that as a matter of policy he could not comment on the issue.
Some sources close to the Embassy Group said that the group is willing to divest even around 20% of its stakes at the project level. He added that the firm is considering and figuring out the other investment details as well.
The top- end villa project of Embassy Group, on the Bellary Road, contains nearly 1,100 units. Each unit will be priced between Rs.1.4 Cr and Rs.2 Cr. The group’s second project, IT-cum- residential project, will be developed in an area of over 20 million sq. ft. in nearby location.
Embassy Group recently raised $200 million (more than Rs.1,000 Cr) from Blackstone through selling 50% of stakes in three business parks in Bangalore. Blackstone will develop a residential cum retail project in the Manyata Embassy Business Park. The estimated investment for the project is Rs.540 Cr.
At present Embassy group has around eight projects under construction. Bangalore market is more stable and vibrant than Mumbai or Delhi as the city has more end-user buyers than investors unlike other metropolitan cities.