Deutsche Bank picks up 5% stake in HCC’s Lavasa Project
Deutsche Bank Singapore has managed a 5 per cent stake in a realty project near Pune. Lavasa Corporation, as this project is called is being promoted by Hindustan Construction Company (HCC) at Lavasa near Pune, for Rs 500 crore. The deal values Lavasa Corporation at Rs 10,000 crore.
According to the industry sources, Lavasa may also issue a fresh equity to Deutsche Bank. HCC had 65 per cent in Lavasa through its real estate subsidiary, HCC Realty. The other partners in the Lavasa project are the LM Thapar group and Venkateshwara Hatcheries, along with other minority stake holders, account for the remaining 35%.
Deutsche Bank’s investment in the Lavasa projects is one of the bank’s largest investments in the Indian realty sector. HCC plans to build hotels, convention centres, apartments and houses in Lavasa, especially for the younger people. The company has acquired 12,500 acres for the township project.
Alongside the progress in construction, HC has also singed agreements with international hotel chains like Starwood Hotels and Resorts and Accord to manage hotel properties within the township. It has also signed an agreement with hospital major Apollo Hospitals Group to set up an integrated multi-specialty hospital at the Lavasa Hill town near Pune.