Ansal API eyes equity investment for Rs 30,000-crore township project

Written by Rajat Guha | Rajat Guha | New Delhi | Updated: Jun 30 2010, 05:03am hrs
After wrapping up a private placement deal with a select group of investors including the Enam Group, realty infrastructure major Ansal API is now in talks with some of the leading institutional investors for another equity investment deal. People involved in the process told FE that as per the current plan, Ansal API proposes to carve out some of the projects in Sushant Golf City, the groups 3500-acre hi-tech township project in Lucknow, into a special purpose vehicle (SPV), in which equity will be offered to a financial institution.

Though the names of the FIs, with which the company is talking to for this proposed equity investment deal, could not be ascertained immediately, these sources said Ansal is open to offering up to 49% stake in the proposed SPV, which will be converted into a joint venture once the deal is finalised. When contacted, the Ansal API spokesman, however, declined comment on the issue. As a matter of principle, our company does not comment on market speculations, he said.

Only last week, Ansal API completed placement of about 6.5% stake in the parent company, Ansal Properties & Infrastructure, through the preferential issue route to a select group of investors to raise about Rs 71 crore. Besides Enam Investment Services, other investors included Sushma Jain, wife of Mr Anand Jain.

Project-level equity placement deals are a new trend gaining momentum in the realty sector of late. Ansal API already has sewed up two such equity investment deals with the investment companies of HDFC and ICICI Prudential. While the HDFC arm has picked up about 8% stake in Megapolis, another ambitious hi-tech township project being built by Ansal API on 2500 acre near Greater Noida, the ICICI PruLife arm will be holding more than 40% stake in an SPV comprising residential projects in Aquapolis, a 130-acre integrated township project of the company coming up in Ghaziabad, Delhi-NCR.

Besides Ansal API, other leading realty majors such as DLF, Unitech and Orbit Corp have also either gone in or in talks for project-level equity investment deals.

Sources said the equity placement plan in the proposed SPV of Sushant Golf City project of Ansal API is to raise funds for speeding up implementation. The 3,500-acre hi-tech township, being touted as the New Lucknow, will be a fully self sustained city with several residential, commercial, retail, leisure and sports projects. Sushant Golf City will also have a biotech park, an IT park, an international golf course, a film city, a medicity, a university enclave and a media enclave. As of now, the total proposed investment in the hi-tech township is estimated to be in the region of Rs 25,000-30,000 crore.