| MUMBAI, March 2
MUMBAI, March 2 Equinox Realty, an arm of
Indian oil-to-steel conglomerate Essar Group, plans to sell a
minority stake in its biggest commercial asset in Mumbai to
raise between 7.5 billion rupees ($152.4 million) and 10 billion
rupees, sources close to the deal said.
Equinox is in talks with several international and domestic
investors, including an arm of Singapore's Government Investment
Corp (GIC) and India's Infrastructure Development
Finance Corp to sell a stake in Equinox Business Park,
"We are exploring opportunities with private equity players
who can bring in strategic inputs and partner in our growth and
expansion plans," Equinox said in a statement, declining to
comment on a potential deal size or buyers.
International private equity firms, mainly from the United
States and Europe, have invested $13 billion in the Indian real
estate sector since 2005 and are expected to exit from up to $5
billion worth of investments over the next couple of years,
according to property consultancy Jones Lang LaSalle.
A GIC official could not immediately be reached for comment.
An IDFC official declined to comment.
Equinox's 1.2 million square foot business park will be
fully developed by the end of the year, and the company is
looking to use proceeds from a partial sale to invest in other
opportunities, the company said in a statement.
The park is 45 percent occupied by tenants paying rents
between 175 and 200 rupees a square foot a month, the company
Domestic private equity firms like Indiareit Fund Advisors
and Red Fort Capital, which are on the road to raise funds to
invest in the Indian property sector, have said they are looking
for opportunities to invest in income-producing assets like
($1 = 49.2150 Indian rupees)
(Editing by Tony Munroe)