IL FS Fund Investing Rs 575 cr In HCC Unit (11-Jun-2010)
IL&FS Milestone Fund is set to invest Rs 575 crore ($122.3 million) for a 74% stake in a property unit of Hindustan Construction Co.
Meanwhile, unlisted HCC Real Estate has built a corporate complex in suburban Mumbai.
IL&FS Milestone is a joint venture between IL&FS Investment Managers and Mumbai-based Milestone Capital Advisors.
Money Matters Financial Services, headed by former Credit Suisse banker Pramod Kasat, however, was the sole advisor to the transaction.
Moreover, IL&FS Milestone Fund was in advanced talks to acquire HCC Real Estate.
On the other hand, Blackstone Real Estate Group is a unit of US private equity Blackstone Group, and an unit of Morgan Stanley were also in the fray.
Earlier, HCC Infrastructure (HIL) signed a Memorandum of Understanding (MoU) with Orascom Construction Industries (OCI) in order to bid and develop large NHAI (road) projects in India.
HCC in a regulatory filing said that it would seek to broaden the partnership with OCI other than bidding for projects on offer from the National Highways Authority of India (NHAI) and the two intend to create a portfolio of premium infrastructure assets across sectors.
HIL and OCI will also explore a broader scope of partnership with the intent of jointly creating a premium portfolio of infrastructure assets across different sectors in India, a press release issued here said.
HCC''s Chairman and Managing Director, Ajit Gulabchand, said "the Indian Government has enhanced the pace of development of world-class infrastructure for India and has chosen PPP as the main tool to implement this. In order to participate in this grand programme, HCC has chosen to partner with OCI, a company in which we find a wealth of expertise and commitment to create quality infrastructure."
On the other hand, Orascom Construction''s CEO and Chairman, Nassef Sawiria, said, “this joint venture will yield significant synergies for both groups. We look forward to exploring further opportunities with our new partner.â€
Meanwhile, the civil works at the Rajasthan Atomic Power Project, Rawatbhata will now be done by the Hindustan Construction Company (HCC) as it has bagged an order worth Rs 887.92 crore from Nuclear Power Corporation (NPCIL) last month.
HCC said in a filing to the Bombay Stock Exchange (BSE) that as per the project requirements it would construct nuclear buildings, control building, station auxiliary buildings, heavy water upgrading plant and other miscellaneous buildings,
The filing also said that the project will be completed in 50 months.
HCC Infrastructure is a 100 per cent subsidiary of Hindustan Construction Company (HCC) while OCI is a leading Middle-Eastern construction contractor.
HCC Infrastructure has grown its portfolio to Rs.5,539 crore. The assets under management include six NHAI road concessions, of which one is operational. HIL plans to grow its Road portfolio to Rs.15,000 crore in the near future. The Company is concurrently evaluating opportunities in Hydro Power and Water where HIL has an inherent edge given HCC''s EPC capabilities, and is also actively evaluating meaningful Airport and Port opportunities.
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