Newstrack

Morgan Stanley invests Rs 675 cr in Oberoi Constructions

EH Staff - Mumbai

In one of the largest private equity deals in real estate sector, Morgan Stanley Real Estate has invested Rs 675 crore in Mumbai-based Oberoi Constructions for an undisclosed stake. There were a total of 14 funds in the bid for the stake - Blackstone, Carlyle and GE, among others.

Vikas Oberoi, MD of Oberoi Constructions said, "We want to establish a pan-India presence as there is immense growth opportunities in other cities. At some point we will consider an IPO, but at present we decided to take the private equity route." The company has projects lined up for Pune, Hyderabad and Bangalore for which it will acquire land.

Anand Madduri, executive director of Morgan Stanley Dean Witter Asia, says, "We've spent three years evaluating the business and have reached a valuation on the basis of the company's individual assets. This is our largest investment in India's real estate sector."