Thursday, March 29, 2012

Brigade trying to raise 500 crore from PE players

Brigade Enterprises is trying to rope in PE players to offload 30% stake in its special purpose vehicle BCV Developers for Rs 250 crore.The Bangalore-based real estate company floated the SPV to develop a 120-acre integrated township project in Devanahalli.
BCV Developers is a 50:50 joint venture between Brigade and Classic Valmark.The Rs 2,000-crore residential project in Devanahalli will have houses for low income households,as also luxurious townhouses and villas.
M R Jaishankar,CMD of Brigade Group,said he was not in favour of structured PE deals,but would definitely consider pure-play PE investors.We have invested Rs 350 crore from internal accruals and the rest will come from institutional funding and advances from sale of units, he said.He declined to divulge the names of private equity players he is talking to.
Brigade also plans to divest up to 30% stake in its subsidiary Brigade Hospitality Services for Rs 250 crore in order to raise funds to expand its hospitality footprint."We are looking at PE players or institutional investors,"Jaishankar said.
The company is planning a Rs 700 crore outlay for four hospitality projects in South India.It is launching a 220 rooms business hotel in Chennai in partnership with Holiday Inn that is expected to be ready by 2013.It is planning two business hotels with over 300 rooms in Mysore and a resort in Kerala.The company already runs two hotels in Bangalore -- a 230-room Sheraton at Brigade Gateway in Malleswaram and Grand Mercure in Koramangala that is managed by the Accor Group.The company has a consolidated debt of Rs 800 crore.It is trying to reduce the debt equity ratio to 0.5,from the current 0.7.

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