MBD Group, a Delhi-based publishing house with significant property assets, is reportedly in talks to sell equity in its mixed-use development MBD Zephyr in Bangalore.
Sonica Malhotra, executive director of the company, told the Wall Street Journal that the company is looking to offload between 26 percent and 49 percent equity in the retail portion of the 80,000 square foot development. She also said that the company has been approached by private equity funds, although she didn’t mention which ones.
The development, which is scheduled to be completed by 2011, is slated to include luxury retail and entertainment spaces as well as a luxury hotel.
Malhotra said that any private equity investment would come after tenants have been found for the space, adding that at this point the development only has one anchor tenant lined up.
MBD is not alone in searching for private equity money as traditional funding sources are affected by the credit crunch. The amount of private equity firms active in India that could offer such funding has been increasing as well. UBS, Protego Real Estate Investors, JPMorgan Chase, HDFC, ICICI Venture Funds Management and Sun-Apollo India Real Estate Fund are just some of the firms that have raised funds to invest in Indian property.