IL&FS Investment Managers is acquiring 9.4% stake in Indiabulls Real Estate's subsidiary - Indiabulls Infraestate for R200Cr. Indiabulls Infrasestate is developing a residential cum commercial project on the 8.3 acre land that was earlier Bharat Mills Compound.

The deal values the Indibulls subsidiary at R2150Cr, 35% premium to the price paid by Indiabulls to acquire the land in 2010.

According to ET, IIML will invest through its second realty fund worth $895Mn and the transaction will mark total deployment of this fund raised in 2008.

Indiabulls Real Estate had acquired the land through an e-auction for R1,580Cr from National Textile Corp Ltd, which was a record price in the city at that time. The project is planned to completed in about 7-8 years, work on the mill land has already started and the first tower is expected to be ready by 2015.

In a similar auction in the same month, Indiabulls had also won the adjacent Poddar Mill on 2.3 acres for R498Cr.

Indiabulls is developing almost 3 million sq. ft on its Jupiter and Elphinstone mills land in Lower Parel, central Mumbai, which it had bought in 2005 and 2006, and where it has built office buildings called One Indiabulls Centre and Indiabulls Finance Centre.

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