Monsoon Capital to take 50 per cent stake in Phoenix group SPV

Massachusetts-based Monsoon Capital is to take a 50 per cent equity stake in a special purpose vehicle (SPV) of Phoenix group, the Hyderabad-based infrastructure and real estate entity backed by the $99.3-million Catalyst Sansara India Opportunity Fund.

Currently, Catalyst Sansara holds a 20 per cent equity stake in the holding company of Phoenix group that has on hand around Rs10,000 crore worth real estate projects across three states in south India involving 30 million sq ft.

The company said the SPV was constructing Golf Edge, a mixed use property of 1million sq ft comprising hotel and residential space with capital outlay of Rs350 crore at Gachibouli on the outskirts of Hyderabad.

The project envisages construction of two 30-storeyed residential towers comprising 497 flats and a 210-room five-star hotel that would be managed by Inter Continental Hotels of Duet group and would be ready by March 2014.

According to Phoenix group managing director Gopikrishna Patibanda, the project would be financed through 60:40 debt-equity and Monsoon Capital had invested 50 per cent of the equity recently.

Though he did not divulge details on the exact amount invested by Monsoon Capital in the SPV citing non-disclosure agreement, he has indirectly indicated that the private equity firm had invested at least Rs70 crore, or $15.65 million, for acquisition of 50 per cent equity.