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Sobha Developers finds investor for Rs 225 crore in Bangalore JV

Date: 27-05-2009

Sobha Developers has entered into a term sheet with Purna Partners.  The latter will invest Rs 225 crore in a special purpose vehicle, which will develop projects in Bangalore and other cities.  Purna Partners made a payment of Rs 25 crore on 26th May 2009 to Sobha Developers as part of this agreement. 

 

Sobha Developers has indicated that it has identified / will identify certain land parcels in Bangalore and other cities for development of residential, commercial and mix development to be developed by the SPV.  Sobha developers indicated that each of the specific projects will be valued separately and it will also be a shareholder along with the investor in the SPV.  Further, Sobha will also be executing these projects as the principal contractor.

 

Sobha Developers reported 52% fall in net profit to Rs 109.70 crore on 32% fall in net sales to Rs 967.90 crore in the year ended March 2009.  During this period, its interest costs zoomed by 41% to Rs 103.90 crore.  The company had total debt of Rs 1763.05 crore, including Rs 1438.09 crore of secured loans as of March 2008. crackcrack