Mumbai: Private equity firm IL&FS Milestone Fund is set to invest Rs575 crore ($122.3 million) for a 74% stake in a property unit of Hindustan Construction Co, two sources with direct knowledge of the matter said.
The deal could be announced on Thursday, said one source, who could not be identified because he was not authorised to speak to the media. A spokesman for Hindustan Construction declined comment when reached by Reuters. Unlisted HCC Real Estate has built a corporate complex in suburban Mumbai.
IL&FS Milestone is a joint venture between IL&FS Investment Managers and Mumbai-based Milestone Capital Advisors.
Money Matters Financial Services, headed by former Credit Suisse banker Pramod Kasat, was the sole advisor to the transaction, sources said.
The Mint newspaper had reported on Thursday IL&FS Milestone Fund was in advanced talks to acquire HCC Real Estate.
Blackstone Real Estate Group, a unit of US private equity Blackstone Group and an unit of Morgan Stanley were also in the fray, the paper said.