The richest Indian, L N Mittal has made an investment of $75 million, or Rs 300 crore, in Indiabulls Properties Investments Trust (IPIT).IPIT is a subsdiary of Indiabulls Real Estate Ltd. Mittal has acquired 3.9 per cent stake in the trust.IPIT, the first Indian real estate investment trusts (REIT) that has decided to list on Singapore Stock exchange, plans to mop up US $ 235 million through divestment of around 13.3 per cent stake. The issue is likely to open in the third week of May. The new trust that was incorporated, as business trust on May 7 2008, would be valued at around $1.8 billion equivalent to Rs 7,200 crore the offer price.91 milion of common units of IPIT was bought for $75 millionby Mauritius-based Wellmark Investment Ltd, a firm which invests on behalf of LN Mittal.

Other investment are not yet certain. According to a banker involved in the issue,they have not received commitments from other long term institutional investors who want to participate in India’s real estate business.But in Mittal’s case the investment has already come into trust.IPIT has projected a net income of $38.5 million and $161.54 million in 2008-09 and 2009-2010 respectively Indiabulls has acquired assets like Elphinstone Mills and Jupitor Mills. The company has acquired 11 acres of Jupiter Mills land in Lower Parel, Mumbai, acquired for Rs 276.6 crore and 7.8 acres of Elphinstone Mills for Rs 441.75 crore.

Categories: Acquisitions & Mergers
Tags: bank, Elphinstone, Estate, estate business, india, Indiabulls, Indian, Investments, l n mittal, Mauritius-based, Mills, MIT, mittal, mumbai, Real, real estate investment trusts, REIT, richest, Singapore, singapore stock exchange, Stock, week, Wellmark