Carlyle Group-FCG IX Fund will invest about $26 Mn in Jaithirth Rao's Value & Budget Housing Corporation.

Existing investors HDFC and India Financial Inclusion fund will also invest alongside Carlyle. The two existing investors had earlier invested Rs90 Cr in the company.

The funding will be used by VBHC to finance the building of new homes for its flagship project Vaibhava in Bangalore. It has so far sold more than 1,000 units at its first housing project in Bangalore, launched in 2010, and aims to sell another 900 starting next month. The project offers apartments priced between Rs5.5 lakh to Rs11 lakh.

Jerry Rao is also planning integrated housing projects in Chennai, Hyderabad and NCR region.

Avendus Capital was the financial advisor to the company for this transaction.

Transaction Reference: Livemint

Jerry Rao - the former head of Citibank and founder of Mphasis started VHBC in 2008 along with his Citibank colleague - P.S Jayakumar.

They have also co-founded a housing finance firm - Home First Finance Company, which is backed by Bessemer Venture Partners. Home First Finance Company also raised Rs17.3 Cr from India Financial Inclusion Fund in it's second round of funding in 2010.

Other players in low cost housing include - Tata Housing(Boisar-Mumbai), Godrej Group(Ahmdeabad), Ansal Properties(UP and Rajasthan), Foliage Developers(Ahmedabad),Sintex Industries(Kalol), Matheran Realty(Karjat-Mumbai) and Neptune Builders(Thane).

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
26/08/11	Value & Budget Housing - Carlyle Asia Growth	Private Equity	Carlyle Asia Growth Partners IV	24.87
14/09/10	Value and Budget Housing - India Financial Inclusion Fund	Venture Capital	India Financial Inclusion Fund	3.70
31/08/10	Value And Budget Housing - HDFC Ltd	Private Equity	Housing Development Finance Corporation Limited	-

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
18/05/12	Private Equity	Panchshil Real Estate Consultants Private Limited	EON SEZ	-	Completed
18/05/12	M&A	Godrej Properties Limited	Bangalore Land	18.25	Planned
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18/05/12	M&A	Looking For	Mumbai Land	529.20	Planned

 

  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Carlyle Asia Growth Partners IV	1040	Retail	www.carlyle.com	Shankar NarayananNicholas ShaoManish GaurNikhil MohtaMahesh ParasuramanKapil Modi

Company
Name	Promoters	Office	Competitor	Website
Value and Budget Housing Corporation Private Limited	Jaithirth Rao	H.M Stafford House,29/4,3rd Floor, 7th Cross,Vasanthnagar Extension,Off Millers Road		www.vbhc.com

  Advisor

Avendus Advisors Private Limited