Big PEs in talks to buy Essar realty arm's Mumbai project`

Leading private equity (PE) funds such as Blackstone, Morgan Stanley, IDFC, and Singapore-based developer-investors Ascendas and Mapletree, among others, have put in bids for the Essar Group-backed Equinox Realty's commercial project in Mumbai, Business Standard reported, citing sources. Equinox Realty was seeking a valuation of around Rs 2,000 crore, said sources. If a transaction materialises at this value, it would be one of the biggest PE deals in commercial property. Recently, Ascendas bought a property in Hyderabad from Phoenix Infocity for Rs 855 crore and Blackstone struck a deal for DLF's special economic zone (SEZ) in Pune for Rs 810 crore. “The funds have shown interest in the project. Now, the company has to take direction from the Essar family, negotiate with funds and close it. It will take at least three months,” said a person aware of the talks. The project, Equinox Business Park, is located off the Bandra Kurla Complex. With a development space of 1.2 million sq ft, it is one of the largest campuses in the area. While three towers in the building are operational, the fourth is expected to be completed in six months. Equinox Realty, headquartered in Mumbai, started the business in 2007. It has a portfolio of nearly 16 million sq ft, under various stages of development. source:http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=19933&cat_id=1