Jul 25 2008
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TAIB Bank buys 26% stake in Indian firm
The deal, one of the first Shariah-compliant transactions in the Indian real estate industry, comes amid a general slow down in the Indian real estate market, Indian financial daily Economic Times reported yesterday.
TAIB Bank has routed the investment through its real estate investment arm Acacia Real Estate .
Anand Raj Projects plans to develop of 600,000 sq.ft. of retail space, which is expected to be operational by the first half of 2009. The proceeds of the transaction will be invested in this project. DTZ India, the Indian subsidiary of DTZ Holdings, and International Property Consultant were the advisors to the transaction. Confirming the development, ARIL executive director Amar Sarin said: "Though the real estate market is passing through a tough phase, the investors are still keen to invest in bankable projects. Our deal with Acacia reinforces the fact that in real estate and, especially, in retail sector, location still remains the fundamental value generator."
India's real estate market is experiencing a slow down. Developers are facing a cash crunch due to the slow down in sales as well as tight liquidity conditions. This has perhaps forced them to look at raising funds from PE investors.
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