Netherlands-based financial institution, FMO will invest $55 Mn (Rs.250 Cr) in Pune realty project of Kumar Urban Development Limited (KUL), through CCDs.

Conversion of these CCDs will give FMO a little less than 10% equity stake in the SPV set up for the project.

The project will be developed in 2-3 phases over 37 acres.

Transaction Reference: Economic Times

Kumar Urban Development is a pune based realty firm promoted by LalitKumar Jain and his family. It has 15 ongoing projects in Pune (9), Mumbai (4), Bangalaru (1) and Mahabaleshwar (1). Ongoing projects consist of eight residential, two commercial/retail projects, one rehabilitation project and four redevelopment projects.

It is also planning to raise additional $45 Mn for this project. Last year In February, company had planned to raised $800 Mn through PE by diluting stakes in various SPVs.

The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO receives external funding and executes special-purpose funds on behalf of the Dutch government that holds 51% stake in the financial institution.

FMO had earlier invested $29.9 Mn in a slum rehabilitation project in Mumbai being undertaken by Ackruti City. This investment was also made through CCDs in the project involving 30,000 slums. In 2009, it had provided a long-term loan to Srei Infrastructure Finance Ltd.

Supertech Limited is also planning to raise PE funding for its Noida-based residential project 'North Eye'. Some other real estate firms like Shriram Properties and Chennai-based Om Shakthy Agencies (Madras) Private Limited are also looking for funding through private equity route.

Recently real estate PE firm Red Fort Capital acquired 26% stake in JV with Ansal Properties to develop a 108-acre residential township project in Gurgaon.

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