JP Morgan made its entry into the Indian real estate market, through a $60 million (3%) equity stake in BPTP Ltd. This continues the dream run for the Faridabad based developer, following Citigroup's and Merrill's investment in the firm.
Citi Property Investments, realty arm of Citigroup, picked up a $80 million (5.8%) equity stake last year. They also recently plegded $160 million towards four SEZs being developed by BPTP in Noida, Gurgaon and Faridabad. Merrill Lynch made a $28 million investment in IT park being developed in Gurgaon by a BPTP subsidiary.
BPTP currently has 65 residential, commercial, IT parks and SEZ projects. They also made news for picking up the largest ever land deal of 95 acres in Noida for $1.2 billion. In their success, they outbid bigger developers such as DLF and Omaxe. The company has so far paid $222 million towards the Noida deal. The latest round of funding, from Citi and JP, is expected to help pay the installments for this deal.
BPTP plans to build a world class business center here including 45.22 million sq ft of offices, 2.5 million sq ft of retail, and 1 million sq ft of hotels and serviced apartments, in three phases, over a decade. Construction costs are estimated at about $1 billion for this project. BPTP is currently looking for funding from PE sources also. The company expects to cash in from the location of the land and its proximity to Delhi's wealthy suburbs and attract tenancy from banks and law firms.
We will continue to track the developer as well the project.
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