BANGALORE: Anand Jain led Urban Infrastructure Opportunities Fund (UIOF) and HDFC Property Fund are putting a mega township project in Chennai on the block, with an asking price of Rs 800 crore for their 55% stake, people directly aware of the matter said.
UIOF, backed by Mukesh Ambani's close associate Anand Jain, and HDFC currently have a 30% and 25% stake respectively in the 5-million sqft mixed-use project Metrozone, being built on a 42-acre land parcel, in Chennai's suburb of Annanagar.
However, the new investors would hold a 65% stake, picking up a further 10%, once Metrozone completes an additional 33 acre juxtaposed land parcel in the coming weeks. With this, the project development would scale up to around 10 million sft.
Bangalore based Ozone Group, which is the developer, holds the remaining 35% shares.
Metrozone is being valued at about Rs 1500 crore. The investors and developer Ozone have approached global private equity investors and sovereign wealth funds with a proposed transaction, which is still in early stages. Ozone has held preliminary talks with Xander, Qatar Investment Authority (QIA), Oman fund and Blackstone among others, as it seeks a new majority partner. S Vasudevan, MD, Ozone Group declined to offer comment.
Xander, which has Lord Jacob Rothschild, Harvard professor Arthur Segel and Sid Yog as its founding partners, has already bought out 1-million sqft of retail cum hotel space in Metrozone for about Rs 350 crore, two years ago.
So while Xander could be a potential front-runner in buying out the stakes held by UIOF and HDFC in Metrozone, QIA and other Middle East sovereign funds are aggressively scanning the Indian real estate market for marquee assets.