Red Fort Capital to pick up 50% stake in Noida project

Red Fort Capital to pick up 50% stake in Noida project
Business Standard, August 6, 2009, Section II, Page 3

Newswire18 / New Delhi

Private equity fund Red Fort Capital will pick up around 50 per cent stake in a Noida residential project, a source familiar with the development said.

The project —Lotus Boulevard, is spread over 40 acres in Sector 100 of Noida and is being developed by the 3C Company.

3C Company has already delivered over 12 million square feet of commercial projects, which includes Wipro’s Gurgaon campus and Patni Computer Systems Noida office.

“Red Fort Capital will acquire up to 50 per cent stake in the project. The total project cost is in the range of Rs 1500-1600 crore,” the source said.

A formal announcement on the deal will be made Thursday. With revival in demand for residential space, a number of private equity funds are now looking to invest in realty projects.

The global economic downturn and liquidity crunch had forced many of realty funds to defer their plans of investing in India-based realty projects. Red Fort Capital currently has one realty fund, Red Fort India Real Estate Fund I LP.

The private equity fund has already allocated over $400 million across 10 deals in India. In June, Red Fort Capital had acquired an 18 per cent stake in a luxury residential project of Parsvnath Developers in Delhi for Rs 90 crore.