Realty PE player Indiareit plans exits worth Rs 440 cr

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Firm focuses on exits from 2006-07 vintage fund vehicles

Indiareit Fund Advisors, the real estate private equity arm of Piramal Enterprises on Tuesday said that the fund is planning exits worth Rs 440 crore from three of its earlier funds and one from a third party mandate.

The private equity fund plans a phased stake sale of a special economic zone (SEZ) within a successful township project located at Hinjewadi, Pune, being developed by Paranjape Schemes. It also wants to exit an investment in Mumbai with the Ariisto Group in a residential project at Santacruz West as well as a mixed-use project at Goregaon.

Additionally as advisors to the offshore manager, Indiareit has been advising on the proposed exit in Forest Trails, a three million sq ft residential township located at Bhugaon in Pune also being developed by Paranjape Scheme, for which a term sheet has been executed by the offshore fund, it said.

Three months ago Khushru Jijina who was heading Piramal Realty joined Indiareit as managing partner. The fund said it immediately prioritise investor returns across all of its advised and managed funds. Jijina said, “We felt it appropriate that we give due attention and importance to a renewed focus on exits from our 2006-2007 vintage fund vehicles and we have initiated discussions with our development counterparts in order to prioritise such exits with a view towards final realisations keeping in mind the various fund tenures.”

Indiareit wants to exit from a phased stake sale of the SEZ within a successful township project located at Hinjewadi, Pune, being developed by Paranjape Schemes. The entire SEZ has a total development potential of 2.9 million sq ft of which 1.48 million sq ft (phase I) is being built and leased to tenants like Accenture, Cisco, L&T, Persistent, KPIT and Crisil. It had invested Rs 242 crore for a 30 per cent shareholding in the project back in 2007.

The retail portion of the Goregaon project has been constructed and is in the process of being leased out while the residential portion is under construction. Indiareit had invested Rs 150 crore across both these projects back in 2008 and has already realised Rs 117 crore with another approximately Rs 190 crore expected to come in within the next quarter.

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