A US-based hedge fund has picked up a minority stake in the Bangalore-based real estate firm Century Real Estate Holdings, a division of the Bangalore-headquartered Century Group, investing close to $100 million (Rs 400 crore) in the company.
Century Real Estate Holdings is to receive $35 million in the first tranche, while the balance is expected to come in over the next few months, sources said. Century Building director Ravindra Pai confirmed the that company has offloaded a part of its stake in the recently formed realty division, but refused to divulge details.
ET had first reported that the Century Group was in advanced talks with a leading global private equity player to raise $100 million. The group has a sizable land bank of over 2,000 acres in and around Bangalore. It currently has over 5 million sq ft of land under development.
According to sources, the company would utilise the funds to acquire land. “The funds would be exhausted in a year. While the primary focus would be on Bangalore, the group is also mulling at expanding its footprint in southern India and could use a small portion of the fund to buy land in other cities as well,” said a source.
Source : Economic Times