Global financial powerhouses like Credit Suisse, Deutsche Bank and ABN AMRO are in the race for picking around 20-30% stake in the Bangalore-headquartered real estate firm, Golden Gate Properties (GGPL), for an estimated $100 million. Sources said the investment will happen at the holding company level and a decision on the suitor could be unveiled shortly.
GGPL has been in the market for raising funds at the holding company level as well as through special purpose vehicles (SPVs). Earlier, media reports discussed names like Blackstone and JP Morgan showing interest in the entity.
However, it is believed that ABN Amro along with the two European banks, Credit Suisse and Deutsche Bank, are in advanced talks for a stake buy. This proposed investment into GGPL values the company around $350-500 million.
At a little over $100 million, this could be one among the largest real estate FDI investments at the holding company level. Earlier this year, Morgan Stanley’s real estate investment arm closed a deal worth $150 million with Mumbai-based Oberoi Constructions. While Bangalore-based real estate firm DivyaSree Developers received $100 million from TPG-Axon Capital, the CapitaLand group and Mumbai-based real-estate developer Runwal group formed a joint venture to develop residential projects with an investment of $100 million.
GGPL, which started operations in 1997, is an emerging real estate company in Bangalore. The company has seven ongoing projects worth Rs 1,500 crore and plans to launch 10 different projects in Bangalore, Chennai and Hyderabad. In the current financial year, it also plans to develop two SEZs with a proposed built-up area of 6 million sq ft.
It is believed that KPMG has been doing the due diligence on behalf of Golden Gate. Credit Suisse has been actively scouting for real estate-linked investments in the country. While it has no India-specific realty fund, it has been investing out of a global fund. Credit Suisse has made two realty linked investments.
Source: Economic Times