AREA Property Partners JV buys Indian developer stake

SUN Apollo Ventures has invested more than $60 million by acquiring a stake in Mumbai-based developer, Keystone Realtors. The joint venture between AREA Property Partners and the Khemka family promoted SUN Group will also invest in the developer’s projects.

SUN Apollo Ventures, a joint venture between Delhi-based Khemka family sponsored SUN Group and New York’s AREA Property Partners, has purchased a 15 percent stake in Mumbai based real estate developer Keystone Realtors for $60.8 million.

According to a report by Indian newspaper Business Standard, the deal marks the first transaction by the joint venture’s $630 million SUN-Apollo India Real Estate Fund in 2009. The vehicle will also invest in existing foreign direct investment projects of Keystone as well as future projects.

There have been very few transactions involving private equity in India’s real estate sector in the last six months and few funds targeting India have closed owing to widespread investor fatigue.

SUN Apollo held a final close of the SUN-Apollo India Real Estate Fund in January 2007. Investors in the fund include Middle Eastern institutions and high net worth individuals.