DivyaSree Developers to raise Rs. 900 cr in commercial realty arm.

DivyaSree Developers, one of the largest privately-held realtors in south India, is set to raise $150 million (Rs. 900 crore) through the private equity (PE) route by bringing as much as 7 million sq ft of its leased out office space under one umbrella. The realtor, in which TPG-Axon had made a $100 million investment at the enterprise level during 2007, is understood to be close to signing the mandate to Standard Chartered Bank for the fund raise.

Bhaskar Raju, managing director of DivyaSree Developers, confirmed to Business Standard that the company is finalising its plans to raise about Rs. 900 crore at its commercial development arm, but are yet to arrive at a structure. 'We should be finalising the contours of the transaction pretty soon as there is high interest for rental-yielding commercial properties in India,' he added.

According to information available, DivyaSree Developers has an annual rental income of about Rs. 300 crore even as it adds another 3 million sq ft of office space. Investment bankers in the know told Business Standard that DivyaSree Developers is under a debt of close to Rs. 1,000 crore and part of the proceeds from the fresh transaction will be used to pare that. DivyaSree Developers has in the recent past embarked on an aggressive expansion in the residential segment and it is currently in the process of rolling out 3 million sq ft of built-up space.



BS