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Parsvnath, Red Fort Capital to develop RLDA land

Parsvnath, Red Fort Capital to develop RLDA land
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First Published: Fri, Nov 12 2010. 11 05 PM IST
Updated: Fri, Nov 12 2010. 11 05 PM IST
New Delhi: New Delhi-based real estate firm, Parsvnath Developers Ltd will sell 49% stake of its special purpose vehicle, which will develop the railway land in New Delhi, to private equity firm Red Fort Capital for Rs270 crore, said Pradeep Jain, chairman of the firm on Friday.
He added, “We have estimated that the total cost from the promoters will be about Rs380 crore for the first 18 months. Of this amount, Red Fort Capital will pay Rs270 crore.”
Parsvnath has won the bid for a 38.3 acre prime land in New Delhi auctioned by Rail Land Development Authority (RLDA) for Rs 1,651.51 crore. Jain further added, “This is the fourth investment by the private equity investor on project on project basis. We will continue to strengthen our project on project basis investment.”
Parsvnath had earlier raised Rs 115 crore by divesting a 22% stake in a housing project in Delhi to Red Fort Capital.
In another PE deal, the company had raised Rs75 crore by selling a stake in a Gurgaon housing project to Sun Apollo. Apart from the housing project, PDL has also raised Rs120 crore by selling 24.5% stake in its office complex project at Connaught Place in the national capital to private equity firm.
The firm that is having a debt of Rs 1,116 crore also reported a drop of 19% in its consolidated net profit to Rs 49.77 crore in the July-September period from Rs 61.43 crore for the same period a year ago. However, the firm’s revenue during the three months ending September was up by 14.38% at Rs 197.96 crore. In the previous fiscal in the same quarter, PDL had achieved revenue of Rs 173.07 crore.
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First Published: Fri, Nov 12 2010. 11 05 PM IST