The Hindu : Business : HDFC India Real Estate Fund to invest in L&T's venture

Online edition of India's National Newspaper
Wednesday, Jun 28, 2006

Business

Business

HDFC India Real Estate Fund to invest in L&T's venture

Corporate Reporter

L&T's track record as creditable developer of IT parks attracted international banks and software companies

CHENNAI: Larsen and Toubro (L&T) has announced that L&T Infrastructure Development Projects Ltd (L&T-IDPL) and L&T Urban Infrastructure Ltd (L&T-UIL), have signed definitive agreements to raise Rs. 95 crore by way of equity and quasi-equity from the Housing Development Finance Corporation (HDFC) and HDFC India Real Estate Fund (HIREF).

HDFC will hold 14.9 per cent equity and HIREF will hold 10.1 per cent equity in L&T-UIL. The company has been engaged in developing urban infrastructure projects across India for last several years. Its portfolio is well diversified with a balanced mix of projects across all urban infrastructure sectors, namely, residential, office space and commercial projects.

L&T-IDPL, by itself and through the company Infocity, has developed and sold / leased a total floor space area of over 6 million sq. ft. in cities such as Hyderabad, Bangalore, Kolkata, Visakhapatnam, Chennai, Kochi and internationally, in Colombo and Sri Lanka, L&T said in a release.

The company's track record as a credible developer of IT parks has attracted international banks and software companies for developing built-to-suit and multi-tenanted facilities for their operations in India and Sri Lanka, it said.

To take advantage of the emerging opportunities in the urban infrastructure sector, the company has decided to house all existing and future projects within the urban infrastructure space in L&T-UIL, a subsidiary of L&T-IDPL. With the proposed investment the post-issue equity valuation of L&T-UIL will work out to Rs. 380 crore on a fully diluted basis.

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