Shapoorji Pallonji & Co, the Indian construction group, may be close to a deal with three private equity firms to sell at 15-20 percent stake in the company’s new real estate holding structure.
The real estate business of the construction group is currently raising $300-400 million from private equity funds. This week The Economic Times reported that HDFC India Real Estate Fund, Citigroup and Government of Singapore Investment Corporation (GIC) could close to acquiring a 15-20 percent stake in Shapoorji’s newly created real estate holding structure.
Shapoorji director Jimmy Parakh confirmed to the paper that the group is in talks with private equity funds to raise about $300 million, but neither the company or the private equity firms would comment on whether a deal is close.
Shapoorji Pallonji reportedly owns 2,000 acres of prime land in Mumbai, Pune, Chennai, Kolkata, Gurgaon, Nagpur and Mysore.
They are currently developing around 550 acres of residential and commercial space including IT parks, hotels, shopping malls and residential properties.