Rustomjee Urbania project to receive Rs 375 crore from Xander group as investment
As per the sources the Xander group is to invest nearly Rs 375 crore in a township project of Mumbai-based realty company Keystone Realtors Pvt. Ltd.
Kapstone Constructions Pvt. Ltd is a wing of Keystone Realtors is currently developing the Rustomjee Urbania project which is 127 acre in Thane near Mumbai. The project is under the joint development pact between the company and some land owners. Xander Investment Management Pte Ltd will invest the capital by purchasing non-convertible debenture (NCD) issued by Kapstone Constructions.
Mr. Ambar Maheshwari, managing director of corporate finance at Jones Lang LaSalle, a property advisory, says that many PE funds are not doing pure equity deals unless they are income-generating asset transactions.
As per the source the transaction has been delayed because Keystone Realtors had to buy out an earlier investor. He further says that with the exit of SUN Apollo, Keystone has given four exits to its investors. In the recent deal the money is collected for the project in which large development is planned.
Mr. Deepak Shandilya, senior director at MAPE Advisory Group Pvt. Ltd, says that the Xander-Rustomjee deal generates continued interest by global and domestic PE funds in the Indian real estate sector. He further says that they will notice maximum deals in range of Rs 50-100 crore and there is no decrease in that while deals of big size will few in number.
Brickwork Ratings India Pvt. Ltd has occupied a “BBB-minus” rating on the proposed debenture issue of Kapstone Constructions with a constant outlook. Instruments having this perceived as safe during the timely servicing of financial obligations and carry moderate credit risk.
Brickwork concluded that the township project will benefit from being there in the execution capability of the developer and a well known brand name. However, there is an execution risk because the project being in the starting phase, dependence on the advance given by the customer, market risk for the unsold area and current over-supply situation in the Thane residential market.
Source: The Live Mint
Ambar Maheshwari, Brickwork Ratings India Pvt. Ltd, Deepak Shandilya, Jones Lang LaSalle, Kapstone Constructions, Keystone Realtors, MAPE Advisory Group Pvt. Ltd, ncd, Non-convertible debenture, PE, Private Equity, Realty News, Rustomjee Urbania project, Sun-Apollo, Xander group, Xander Group Inc, Xander Investment Management Pte Ltd
