Indu Projects, a Hyderabad-based Indian developer, has sold a minority stake to Credit Suisse for Rs 430 crore ($100 million, €67 million).
Founded eight years ago, Indu Projects primarily develops real estate projects in Andhra Pradesh. The firm is headed by construction industry veteran Shyam Reddy, formerly of IVRCL Projects. The company is currently constructing a real estate project in Pune and an IT park in Hyderabad.
According to a report in the Indian newspaper The Times of India, Credit Suisse invested directly in the company rather than through a special purpose vehicle, which has been more common in the Indian real estate sector since such deals have begun to slow down.
Andhra Pradesh, a state located on India’s Southeast coast, has been a popular destination for private equity capital. In June, Housing Development and Finance Corporation picked up a 45 percent stake for $58 million in a Lodha group realty project in Hyderabad. Earlier this year, Westport Capital partners announced plans to develop a 60-acre residential complex in Hyderabad in a deal worth more than $100 million. In 2006, Tishman Speyer and partner ICICI Venture struck a deal to build a $100 million office complex in Hyderabad. Earlier that year, Citigroup’s private equity arm invested about $50 million in a Andhra Pradesh-based real estate development company.