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Red Fort sells Exora business park stake to JV partner

Listed property developer Prestige Estates Projects is to acquire Red Fort’s stake in the high profile business park.

Red Fort Capital, the Delhi-based private equity real estate firm, has sold its majority stake in the high-profile Bangalore office park, Exora Business Park, to its joint venture partner Prestige Estates Projects.

The transaction details were not disclosed, but Exora is reportedly valued at around INR 14 billion (€193 million; $211 million) making the deal one of the largest exits in the Indian private equity real estate space.

The fully leased out business park, which consists of three buildings with 3 million square feet of built-up area and more than 2 million square feet of leasable area, is home to tenants including bank JPMorgan, equipment firm Juniper, and networking website LinkedIn, and Delhi One, a mixed-use residential block and hotel for the well-heeled.

The Red Fort sale comes just months after the Red Fort founders signed a separation agreement.

After consulting with Red Fort’s investors, it was determined that co-founder Subhash Bedi buy and assume sole management of Red Fort Capital Management Company, a Mauritius-based entity charged with the management of the funds.

He will be exclusively responsible for improving and maintaining the funds’ 26 assets and, ultimately, their sales by the time they are scheduled to wind up in 2018. This will be done in conjunction with Rising Straits Capital, a company which has become Bedi’s main business.

“We have been equity partners in this project for more than eight years, and have supported it through the complete development and leasing lifecycle. The transaction is an excellent example of value creation through a long term association with a trusted development partner,” Bedi said of the Exora exit.

Red Fort’s other co-founder, Parry Singh, meanwhile, has retained his two-thirds ownership of Red Fort’s general partner and the funds’ co-investment. He has kept the Red Fort brand and has bought Bedi’s stake in a non-bank finance company they had jointly owned which issues debt to Indian investors and developers called Red Fort Capital Finance.