New Delhi, Jan 31 (PTI) Private equity fund Lapis India Capital Advisors (formerly Sun Apollo) has exited from realty firm Sobha Ltd’s housing project in Bengaluru with about two- fold return on investment.
The PE firm had invested Rs 50 crore in this project and received Rs 98 crore in four years.
“The realty PE Fund Lapis India Capital Advisors Private Ltd (formerly Sun Apollo) has fully exited its investment in Sobha Palladian project of Sobha Ltd in Bengaluru with approximately 2X return,” Sobha said in a statement.
“It had invested Rs 500 million in a 50:50 partnership with Sobha in its SPV ‘Sobha Highrise Ventures Pvt Ltd’ and has received back a total of Rs 980 million over a period of 4 years starting 2013 from internal accruals, without impacting Sobha’s debt-equity ratio,” it added.
This is seen as an excellent investment return in Bengaluru real estate market given the challenging economic environment for the past several years, the company said.
“We are probably one of the first companies in Bengaluru real estate market which has been able to give exit to its PE fund partner with handsome returns, given the current slow moving realty sector market,” Sobha Vice Chairman & Managing Director J C Sharma said.
Stating that the government has relaxed the FDI norms considerably, he said: “The timely exiting of PE Fund Lapis India from one of our projects in Bangalore with good profit is testimony to the fact that there is great promise in this sector for FDI funds.”
This is published unedited from the PTI feed.