Indiabulls Real Buys Majority Stake In DPD

Indiabulls Real EstateIndiabulls Real Estate (IBREL) has decided to buy majority stake in the London-listed property fund Dev Property Developers (DPD) to gain majority control over two of its valued properties in Mumbai.

IBREL has acquired more than 90% in Dev for about Rs 1,100 crore. The stake has been purchased from the three major shareowners of Dev Property, which includes Fidelity, Government of Singapore and HSBC.

Dev, an entity listed on Alternate Investment Market of London Stock Exchange, owns minority stakes in different real estate projects that are owned by Indiabulls group such as Jupiter Mills, Elphinstone Mills and the 6,000-acre SEZ at Raigad in Maharashtra.

IBREL will issue novel shares in the form of global depository receipts (GDRs) (to be listed on the Luxembourg Stock Exchange’s Euro MTF) that matches the DPD valuation.

The recent deal also paves the path for IBREL to set up its Real Estate Investment Trust (REIT) in the Singapore Stock Exchange (SSE). IBREL had already got sanction to list REIT at SSE and started steps to form a property trust before the listing.

Indiabulls, which bought Jupiter and Elphinston Mills from NTC in 2005, has decided to transform them into commercial complexes.

On Thursday, IBREL shares remained down by 1% and marked their closure at Rs 647.30 on the Bombay Stock Exchange (BSE).

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