AKRUTI TO DEVELOP PRABHADEVI PROJECT FOLLOWING SIVA'S ENTRY

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Akruti City will develop the eight-acre plot parcel at Prabhadevi in Mumbai in which the maverick investor C Sivasankaran recently bought a majority stake. A person close to the Chennai-based serial investor said: "Siva (as he is better known to his friends) will remain a passive investor in the project. It will be developed by Akruti City, which holds a 34% in it. Siva may exit soon after the completion of the project." It also means that Akruti City has shelved its plan to pull out of the project, he added. Siva bought a 66% stake in the project from DLF for Rs 310 crore last month. Hindoostan Spinning and Weaving Mills, the defunct private mill located near the Siddhivinayak temple at Prabhadevi, was bought by DLF and Akruti for Rs 350 crore in 2007. When contacted, Vimal Shah, managing director, Akruti City, said, "As of now no one has contacted us for developing the Hindoostan Mill project. I would not like to discuss the status of the project now." An email sent to MV Srinivasan, group CEO of Siva Ventures, an investment firm owned by Mr Sivasankaran, remained unanswered. Local real estate players are of the opinion that Siva's entry will inject fresh lease of life into the project that has been on hold due to liquidity crisis in the real estate industry. Akruti is in the process of raising $500 million through qualified institutional placement to take care of debt of around Rs 500 crore and to finance the incomplete projects. Siva seems to be focusing on the Mumbai realty market which has started witnessing activities after a lull. It is learnt that Siva is also exploring other investment opportunities in the sector, including DLF's land parcel in Andheri area of North Mumbai.

Courtesy:- ET dt:- 08-06-09