Dev Property Raises Rs.1, 200 Crore from AIM – London

Wednesday, January31, 2007

Dev Property, an arm of Indiabulls, raised Rs.1, 200 crore
on London’s Alternative Investment Market to invest in Indiabulls-backed
real estate projects in India. This follows the trend set by established
real estate developers Rahejas, Hiranandani and Unitech.
The Khmekas and UK’s Apollo group recently generated $630 billion
from the LSE for investment in real estate.

Managed by the Deutsche Bank, Citigroup and UBS, and marketed by
CLSA, the maiden issue offered 15% of its equity to institutional
investors. These include LN
Mittal, Fidelity, Capital Research and the Government
of Singapore.

Rs. 1,055 crore of this resource will be invested
in real estate projects in commercial and residential
properties in Mumbai, Delhi, Kolkata, Chennai, Bangalore and Hyderabad,
as well as in SEZs.

Dev plans to use the capital for minority stakes in three projects
– two IT projects in the Jupiter Mills and Elphinstone Mills projects
in Mumbai and in an SEZ project valued at $225 million, likely to
be completed in three to four years. The fund will hold a 26 % share
in each of these IT projects and 15 % in the SEZ project.

The firm will be partnering Indiabulls in some of its
real estate projects, and Rs. 618 crore has already been invested
so far.

Indiabulls is a leading financial services and real estate
company offering securities, consumer finance, mortgage and real
estate development. Knight Frank has valued its investments
at Rs. 21, 5669 crore.

Another India-focused real estate fund planning to raise capital
from London’s Alternative Investment Market is UK-based Trinity
Plc, which has an asset management company called Trikona Capital.
It plans to raise $1 billion for investment in diversified realty
projects in India.