IDFC Private Equity and SBI Capital Markets may pick up a combined stake of 12% in Atlanta?s wholly-owned subsidiary Atlanta Tourism Ventures that will develop a R9,500-crore theme park at Surat in Gujarat.
The theme park, Asia?s biggest, is to be funded through a mix of equity, debt and amount received from pre-sale of facilities like restaurants and hotels. Atlanta managing director Rajoo Barot told FE that R1,000 crore would be in the form of equity, R3,000 crore debt and balance R5,500 crore pre-sale consideration.
Barot said his company is discussing stake sale with private equity players, but refused to name the parties on the other side of the table. ?We are in talks with some private equity players for stake in the project,? he said.
Informed sources, however, said IDFC Private Equity and SBI Capital Markets are two main companies interested in buying the stake. Emails sent to SBI Capital Markets and IDFC Private Equity did not elicit response. IDFC?s senior director (brand and corporate communication) said, ?As a policy, we do not comment on market speculation, and have no comments to offer.?
The sources said the two could invest a total of R120 crore in the Atlanta Tourism Ventures in lieu of stake in the company. For debt portion of funding, Atlanta is understood to be in talks with Kotak Mahindra Bank, they added. ?We are talking to banks for raising debt to partly meet requirements. We are happy to see immense interest from financial institutions in the project, which will be a signature project and redefine tourism landscape in India and Asia,? Barot said.
Atlanta, which has presence in highways, mining and real estate, has received Gujarat government?s in-principle approval for development of a theme park at Surat. Barot said his company is in discussion with ?few international theme park operators? to rope them in as partners. Sources said Atlanta can partner Canada?s Wonderland or Malaysia?s Genting. The company plans to build the theme park in four phases starting April 2012.
The project will be spread across 13 square kilometre. It will have a nature park, an amusement park, a water park, a beach park, restaurants, hotels, studios, forest villas, beach villas and apartments among other facilities. The company also plans to provide air taxi helicopter services from major cities to facilitate adequate footfalls.