Merrill Lynch Fund Moves In To A New Neighborhood

From Staff Reports

DLF Ltd., the largest real estate company in India, announced the sale of a minority stake in several of its assets yesterday (Tuesday). According to Bloomberg News, the divestiture brought in $426 million dollars for a total of eight housing projects located throughout India.

DLF sold a 49% stake in seven housing projects to a Merrill Lynch & Co. Inc. (MER) fund for $377 million.  Those projects are located in Madras, Bangalore, Kochi, and Indore, and should be fully developed in eight years, according to DLF. DLF also sold a 49% stake in a housing project in the northern state of Haryana to Brahma Investments for $49 million.

It's no surprise that more and more private equity investors are looking to scoff up Indian real estate considering Moody's Investors Service (MCO) said just a few months ago that the Indian real estate industry is poised to grow seven-fold to $90 billion by 2015.

Indian property developers have raised more than $7 billion by selling shares in the local market, as well as on London's Alternative Investment Market, since August 2006.

On the shortlist of private equity investors yet to lay claim to any Indian land is Donald Trump Jr., son of the famed business mogul, who said The Trump Organization could make its move in India some time next year. "I would like to take advantage of hotels and resorts coming up for future investment," Trump Jr. said at a real estate conference in Mumbai.

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