MANOJa

NEW DELHI: Logix Group is selling four office buildings in Noida to IL&FS Investment Managers, the only listed private equity fund in India, for Rs 600 crore. Citi Property Investors, which holds 50% in the property Logix Cyber Park, will get an exit through this transaction, said an investment banker close to the transaction, who did not wish to be named.

Last year, Apollo Global Management had acquired the real estate investment management group of Citigroup called Citi Property Investors. Citi had invested around Rs 60 crore in 2006 for a 50% stake in the project.

The four buildings with 3-lakh-sq-ft of space in each are spread over 11 acres in Sector 62 in Noida and are certified Leadership in Energy and Environmental Design (LEED) Silver-rated buildings.

A spokesperson for Logix group declined to comment on the deal. Emails sent to IIML and Citi Property Investors, which is now managed by Apollo Global Real Estate Management LP, went unanswered. IL&FS Investment Managers had recently acquired 9.4% shareholding in an Indiabulls firm that is developing a project on Bharat Mills at Worli in Mumbai for Rs 200 crore.

In the past one-year, private equity funds have been looking at investing in income producing commercial buildings and have set up a number of dedicated rental yield funds. In the past few months, some big-ticket transactions too have taken place. IDFC recently acquired a 1.36-million-sq-ft IT park owned by DLF and The 3C Company in Noida for Rs 512 crore. Blackstone has bought an IT SEZ in Pune, which was owned by DLF and Hubtown, for Rs810 crore.

The fund has also bought a stake in an IT SEZ in Bangalore owned by Embassy. Sources of funding for real estate developers have dried up in the past one-year as banks have become cautious while lending to these companies. In this period, many developers have resorted to private financing at higher interest rates.



Logix to sell Noida properties to IL&FS Investment Managers - The Economic Times