Lapis India Capital Advisors Private Ltd. Exits Sobha Palladian with ~2X return
The realty PE Fund Lapis India Capital Advisors Private Ltd. (formerly Sun Apollo) has fully exited its investment in Sobha Palladian project of Sobha Ltd. in Bengaluru with approximately 2X return. It had invested Rs. 500 million in a 50:50 partnership with Sobha in its SPV “SobhaHighrise Ventures Private Limited” and has received back a total of Rs. 980 million over a period of 4 years starting 2013 from internal accruals, without impacting Sobha’s debt-equity ratio. This is seen as an excellent investment return in Bengaluru real estate market given the challenging economic environment for the past several years.
J C Sharma, Vice Chairman & Managing Director, Sobha Ltd. said, “We are probably one of the first companies in Bengaluru real estate market which has been able to give exit to its PE fund partner with handsome returns, given the current slow moving realty sector market. It revalidates our confidence in our international quality products backed by good governance practices and transparency, delivered on time which can bring right returns to any FDI.”
He further added that since the realty sector was facing demand slow down, the government had relaxed the FDI norms considerably. The timely exiting of PE Fund Lapis India from one of our projects in Bangalore with good profit is testimony to the fact that there is great promise in this sector for FDI funds.