Indiabulls Real to buy Dev Prop for Rs1,092cr

Indiabulls Real Estate (IBREL) plans to acquire Dev Property Development, a entity listed on Alternate Investment Market of London Stock Exchange.

According to a release issued by IBREL to the BSE today, the company's board has approved a proposal to buy 100% stake in Dev Property by issuing new shares represented by Global Depository Receipts (GDRs).

Indiabulls has valued Dev Property at GBP 138 million (approximately Rs 1,091.85 crore) and share at 100 pence based on the closing price of IBREL at Rs 654.40 yesterday (currency exchange rate of Rs 79.12 for each Pound Sterling).

Meanwhile, Indiabulls Real Estate also plans to raise upto GBP 150 miilion through international offering for business purpose.

Dev Property focuses on investment in commercial real estate developments (including the the Information Technology (IT) and Information Technology Enabled Services (ITES) and residential real estate developments in Tier 1 cities in India such as Mumbai. The AIM listed entity also has plans to make investments in Special Economic Zones (SEZs).