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BIGGEST PE DEALS
Golden handshakes
Get savvy about the biggest private equity deals over the last year, the biggest dealmakers and what Venture Capitalists look for when zeroing in on potential start-ups! Also in this package, meet the stalwarts at Saif Partners and Bessemer Venture Partners to get a grip on their India strategy. Plus, columns by entrepreneurs who made it big with timely PE investments...
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 Investee: K Raheja Group
Investor: Ishaan Real Estate
Investment Value: $251.63 mn
Ian Hendersen, Chairman, Ishaan Real Estate, said in his interview, “Investment in the initial portfolio of assets is being completed, largely according to a plan, and the increased net asset value reflects the strong demand for our properties and the enormous potential of the Indian property market.” IRE is the holding company of K Raheja Corp floated in order to raise money from foreign markets. IRE leverages the muti-decade experience of the K Raheja Corp. in the Indian real estate sector.
Ishaan Real Estate (IRE), a real estate fund listed on LSE’s Alternative Investment Market (AIM), invested $251 million in K Raheja Corp.’s various projects located in western and southern India. This investment was part of the $412 million that company raised through its global IPO in November 2006. IRE holds a 40% stake in each of Raheja’s eight projects comprising shopping malls, IT parks, hotel projects and residential projects. The Raheja Group at present has expansion plans for their residential, IT park projects and SEZs. Apart from that, the company has major expansion plans for Globus stores, one of their retail ventures. They will be spreading to all parts of the country, and have 152 stores by the year 2012, which will need an investment of nearly $200 million. Also, their other brands such Shopper’s Stop, InOrbit Malls, Mindspace and Commerce Zone will rake in additional investments in the wake of rising demand.
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 Investee: DLF Ltd.
Investor: Merrill Lynch & Co.
Investment Value: $377 mn
Naveen Jain, Real Estate Analyst, Emkay Research, says, “DLF, one of the largest real estate company in the country, and has huge land reserves which it plans to develop over the next 10 years or so. The company already has a large pipeline of projects, which are currently under development and require funds to meet the working capital requirements. By raising funds at the project level, as has been done in the Merrill Lynch deal, the company has not only got the necessary funds to develop these projects but it has also unlocked value in the properties for the shareholders.“
After pioneering Indian real estate domain, the richest realtor in the orb, K.P. Singh of DLF, is painting the town red by redrafting the technique to unlock value in the real estate prefecture. The company raised as much as Rs.1,481 crores by selling 49% of the promoter’s stake in eight of its residential projects to Merrill Lynch. The move comes in good time for both since, of late, DLF has increased its focus on the burgeoning housing segment and that too in the Rs.4-5 million bracket – which is the pulse of the Indian housing segment. DLF will enjoy a significant increase in its net asset value and Merrill Lynch will encash exciting returns. The housing projects in which stakes have been diluted are located in the cities of Chennai, Bangalore, Kochi and Indore. Besides, in order to re-enforce its strength in the domain, DLF recently announced a $15 billion deal with Dubai’s Limitless Group to build a township in Bangalore. Moreover, with its billion dollar projects across various segments (Hotels, Commercial, infrastructure, et al), it looks like DLF is racing against itself.
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