Indiabulls Real Estate to Acquire Dev Property in £138 Million Share-Swap Deal
Indiabulls Real Estate Ltd announced on Thursday that its board has approved the acquisition of the entire stake in Dev Property Development Plc. This acquisition will be executed through a share-swap deal valued at £138 million, equivalent to approximately ₹10.9 billion.
About Dev Property and the Acquisition
Dev Property, listed on London's Alternative Investment Market (AIM) in 2007, is promoted by the Indian property developer and holds stakes in several Indiabulls projects within India. As part of the transaction, Indiabulls Real Estate will issue its own shares to Dev’s current investors. These investors include prominent names such as Farallon Capital, Fidelity, the Government of Singapore, and Citigroup. Dev shares closed at 75.50 pence on Wednesday, giving the firm a valuation of around £120 million.
Indian Developers and London's AIM Exchange
This acquisition reflects a broader trend of Indian developers leveraging London's AIM exchange to raise capital. Driven by the rapidly expanding urban real estate market in India, several developers have sought funding through this avenue over the past two years. Notable examples include Mumbai-based developers like the Rahejas and the Hiranandani group, who have also utilized the AIM exchange for their fundraising endeavors. This strategic move by Indiabulls strengthens the company's position within the dynamic Indian real estate landscape.