*ETA Star Property Developers Private Limited* is in talks with PE investors
to dilute stake in its SPV- *ETA Star TechCity Private Limited*.

The funds from the stake dilution will be used to partially fund the
project.

The company's projects usually have a debt portion of around 70% while the
remaining is equity funded.

 Transaction Note

ETA Star Property Developers is a part of the Dubai-based *ETA Ascon Star
Group*.

In 2008, the company had signed an MoU with the* Tamil Nadu Industrial
Development Corporation* to set up an integrated township at Sriperumbudur
for an estimated cost of Rs 3,750 cr.

TNIDC holds about 1% stake in the SPV.

Under Phase I, the company is planning to develop around 60 acre of
residential flats and commercial complex with an investment of around Rs 160
cr. It is looking at developing 400 units of flats for the mid-segment.

The project to be implemented in 3 years would create a built up space of
17.5 mn square feet for apartments, houses, bungalows, shopping mall, car
park, hospitals, schools, hotels and service apartments on about 350 acres.

It would also include IT and ITeS special economic zone on about 50 acres.
The company has signed up with Mumbai-based Ryan International Schools for
developing a school in the SEZ.

The land for the project had been privately purchased by the ETA Group and
no land acquisition by the government was required

Recently, *Ackruti City Ltd *had announced its plans to divest stake in its
SPV formed for projects to raise a total of Rs 250cr. Prior to that, *Kumar
Urban Development Ltd* was also looking out to raise upto $80mn through PE
by diluting stake in various SPVs.


-- 
Regards

Hardik Shah

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