HDFC sponsored - Property Fund to exit two investments

The country's largest mortgage lender, HDFC sponsored - HDFC Property Fund will exit two of its investments soon which will fetch the company around Rs 630 crore. The fund will exit its investment made in Manyata Business Park which it had bought five years ago for Rs 210 crore. The fund will sell its 21 per cent stake in Manyata Business Park, a 7.7 million square feet infotech special economic zone in Bangalore, to the Embassy Group for Rs 540 crore. The second is a partial exit, whereby the fund will redeem the compulsorily convertible debentures issued by property developer Ozone Group in a residential project called Metrozone in Chennai. The fund will make Rs 113 crore from redeeming the debentures.

The exits was the strategy of HDFC Property Fund's' plans to return funds to investors of its domestic fund, which has a corpus of Rs 1,000 crore. The seven-year fund was raised in 2005 and has made 16 investments so far. The domestic fund presently has a valuation of Rs 2,100 crore. With these exits, the company plans to return Rs 1,000 crore to investors and the remaining in the next one year.

HDFC Property Fund also has a $800 million international fund and a Rs 464 crore rental yield fund. Last year, the fund exited its investments in Godrej Woodsman Estate in Bangalore and Ansal IT park in Noida, earning Rs 230 crore from the sale.