BackXander nets 2x returns in exit from Rustomjee projects
Xander’s private equity arm had invested around ₹370 crore in 2014 through non-convertible debentures in Rustomjee-owned Kapstone Constructions Pvt. Ltd, which is building a 127-acre residential township in suburban Thane and another in Juhu
PremiumAlternative investment firm the Xander Group Inc. has made around ₹700 crore, or 2x its investment, by exiting two realty projects of the Rustomjee Group in Mumbai, said a person, requesting anonymity.
Xander’s private equity arm had invested around ₹370 crore in 2014 through non-convertible debentures in Rustomjee-owned Kapstone Constructions Pvt. Ltd, which is building a 127-acre residential township in suburban Thane and another in Juhu.
“Keppel Corp., the property arm of Keppel, will fund around ₹410 crore for exiting Urbania in Thane, while Rustomjee will fund the balance amount for the Elements project in Juhu from its internal accruals," the person said.
Spokespersons of Xander and Rustomjee did not respond to queries. Mint could not immediately reach out to Keppel Land. Real estate consultancy firm Anarock Capital is advising the transaction.
Given the uncertainty facing India’s residential sector in recent years, Xander’s exit will be one of the most profitable for a global investor in the housing sector.
Xander has committed more than $3 billion in the real estate market, including office, retail and warehousing, since it started investing in India in 2005.
Xander’s private equity arm has made investments in residential projects in Pune, Bengaluru and Mumbai.
Last December, Keppel Land had formed a joint venture with Rustomjee Group, and infused around ₹410 crore for a 49% stake in the Urbania project in Thane.
In September, Keppel Land had also tied up with TVS Group’s realty arm to develop a condominium project in Chennai.
It has partnered with Emerald Haven Realty, a TVS Group firm, to pick up a 49% stake in the JV for a total consideration of ₹77.2 crore.
Last year, Keppel Land had also invested $25 million in Smartworks Coworking Space Pvt. Ltd, a flexible office space solutions provider.
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