Mumbai: IL&FS Realty Fund said on 10 April it would invest $100 million (Rs430 crore) in a start-up property developer QVC Realty Ltd that will build hotels, homes and townships.
IL&FS Realty, the real-estate fund of private equity firm IL&FS Investment Managers Ltd, will own 100% of QVC. As the projects come up, founders of QVC will get equity stakes for an undisclosed amount, a top official said. “We have committed $100 million and the management will take a stake on delivery,” said Shahzaad Dalal, vice-chairman and managing director of IL&FS Investment Managers.
QVC will develop a 100 acre township in Gurgaon, near New Delhi, and is tying up for 100 acres in Bangalore for a similar project, said Prakash Gurbaxani, who founded the firm in January. The combined market value of the two projects could be Rs3,000 crore, said Gurbaxani, a former executive at the Indian JV of Tishman Speyer and ICICI Venture. IL&FS would invest more in QVC when there is a need and the new firm would not be the sole vehicle for its realty fund investments, Dalal said. IL&FS Realty, an eight-year fund with investors like California Public Employees Retirement System, has invested 75% of its $525 million fund in 15 transactions, he said.