ADAG Buys 15% In KGS Developers For Rs 225 Cr
Anil Dhirubhai Ambani Group (ADAG) has bought 15% stake in a new international airport coming up at Aranmula in Pathanamthitta district of central Kerala for Rs.225 crore.
The investment was made a few months ago through one of the group's smaller investment companies at Rs.486 per share.
R-ADAG’s 15% will be in the airport's main promoter, Chennai-based KGS Developers Limited, which is planning real estate projects worth over over Rs.11,000 crore in south India, including a business district along the Chennai-Pondicherry corridor.
R-ADAG is a 50% partner in three large township projects planned by KGS, which also has a tie-up with Reliance Adlabs to set up shopping mall-cum-multiplexes at 30 locations in 17 cities.
This airport is the first private sector airport in Kerala at an investment of Rs.2,000 crore which is promoted by KGS Aranmula Airport Limited which will be situated in the Sabarimala hills, which houses the famous shrine of Lord Ayyappa. The airport is scheduled to be fully operational by December 2012.
Transaction Reference: BS
R-ADAG is developing five small airports in Maharashtra through Reliance Airports Limited, a subsidiary of Reliance Infrastructure.
Kerala has three international airports: Kochi, Thiruvananthapuram and Kozhikode.
The promoters of KGS Developers hold 51% stake in the project, Aranmula Aviation Limited, a company promoted by a consortium of Keralite organisations in North America and Mount Zion Trust promoted by local businessman Abraham Kalamannil, holds 30% stake.
The state government-owned Kerala Industrial Infrastructure Development Corporation is also likely to pick up around 10%.
About the Airport Project
The first phase of the airport, with a runway of 1,800 meters, will be ready by next year. It will be extended to 3,000 meters by the end of December 2011. In the first phase, planned at an investment of Rs500 crore, the airport can handle only small aircraft. On completing the second phase, wide-bodied aircraft like Airbus can land at the airport. It is expected to handle traffic of 50,000 passengers in first phase and 1.34 lakh every year on completion.
KGS Aranmula Airport is in possession of 350 acres of land and will acquire another 150 acres. Land has been levelled for the first phase and has obtained site clearance from the Ministry of Civil Aviation.
The project will also include 150 acres of real estate development, which will include a five-star hotel managed by the Taj Group, a three-star hotel, a single-star hotel, an international school, and a shopping mall-cum-multiplex.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 06/09/10 | KGS Developers - ADAG | M&A | Anil Dhirubhai Ambani & Group (ADAG) | 48.40 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 07/02/12 | Private Equity | SUN-Apollo India Real Estate Fund | Assotech Limited | 15.29 | Announced |
| 06/02/12 | Private Equity | Kotak Realty Funds Group | Orris Infrastructure Private Limited | 16.40 | Announced |
| 02/02/12 | Private Equity | Ascendas India Trust | Operational Buildings | 36.04 | Completed |
| 02/02/12 | Private Equity | Baring Private Equity Asia Limited | RMZ Corp Holdings Private Limited | - | Announced |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| KGS Developers Limited | PV Sanmugam Gigi George K Kumaran |
KGS Corporate House, No.43, Besant Avenue Road, Adyar | www.kgsdevelopers.com | |
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