Partnering for growth

Posted: Sunday, Sep 07, 2008 at 2206 hrs IST
Updated: Sunday, Sep 07, 2008 at 2206 hrs IST

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: plan is drafted, where they bring in the key management team. The infusion and recommendation of internationally reputed architects, project management companies are brought-in to implement the vision and present world class facilities. Other areas of key intervention by the funds are securing marketing tie-ups with institutions and international property management firms, adoption of corporate governance best practices, access to public markets for IPOs, to name a few.

As PEs provide capital, with long term investment horizon period of 7 to 10 years, it enables the developer to effectively sustain the downturn in market. It also provides financial stability to the regional player to implement value based phasing of sales rather than getting constrained by cash flow compulsions. The other spin off to developer are in terms of development of large scale project execution capabilities, which they can leverage onto their future standalone projects and appreciation in value of other land banks they own in nearby region The relationship between PE funds and regional developer is mutually rewarding. Many other entrepreneurs are dreaming of successful scale up of their operations and PE funds with right skill-sets can make them realise their dreams....

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