GIC Looks to Buy up to 50% in Prove­nance

The Economic Times - - Companies: Pursuit Of Profit - Kailash.Babar @times­group.com

Mumbai: Gov­ern­ment of Sin­ga­pore’s sov­er­eign wealth fund GIC has emerged as the front-run­ner and is in ad­vanced talks to buy up to 50% stake in Prove­nance Land that owns In­dia’s first Four Sea­sons ho­tel and an un­der­con­struc­tion lux­ury de­vel­op­ment in Mumbai’s Worli lo­cal­ity, said three per­sons fa­mil­iar with the de­vel­op­ment.

GIC is set to en­ter into a bind­ing agree­ment with Prove- nance Land for the said stake buy over the next few days. The deal val­u­a­tions and ex­act quan­tum will be ne­go­ti­ated over the next few weeks. “The ex­act quan­tum of stake sale is yet to be ne­go­ti­ated between both the par­ties, but the pro­moter fam­ily (Ja­tias) may sell any­where between 26% and 49% stake in Prove­nance Land. The deal is es­ti­mated to value the com­pany at around .₹ 2,000 crore,” said one of the per­sons men­tio- ned above.

This will be the sec­ond large trans­ac­tion to be con­cluded by GIC fol­low­ing its agree­ment with pro­mot­ers of DLF to pick up 40% stake in DLF’s rental arm for around .₹ 12,000 crore.

Fol­low­ing the con­clu­sion of the deal, both Prove­nance Land and GIC will also be de­vel­op­ing a com­mer­cial project on nearly 2 acre land par­cel ad­ja­cent to the ho­tel and res­i­den­tial project site. The de­vel­oper’s res­i­den­tial de­vel­op­ment Four Sea­sons Pri­vate Res­i­dences Mumbai has so far sold 65% of the in­ven­tory.

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