2014-02-05 08:50:19 - BANGALORE | MUMBAI: Private equity firm MPC Synergy Real Estate is exiting its investments in Akme Projects, the real estate developing firm of Anil Nanda Group, two people with direct knowledge of the development said.
"The fund does not want to continue business with Akme Projects as the relationship did not go as planned. Some projects are yet to take off," said a person involved in the transaction.
MPC Synergy is a joint venture between Geneva-based private equity investment fund Synergy Asset Management Fund and Germany's largest close-ended fund manager MPC Capital.
Akme had formed a 50:50 joint venture with MPC Synergy in 2008 to develop premium housing projects with an equity investment of about Rs 1,000 crore.
The joint venture firm, Akme Rhine River Projects, was expected to develop seven projects in Ludhiana, Mohali, Greater Noida and two each in Bangalore and Gurgaon by 2012 totaling 7,600 apartments and 400 villas.
Several private equity funds are at loggerhead
with builders over delay of projects or corporate governance issues. While some have initiated legal or arbitration proceedings, others are willing to exit at a loss as a large number of funds are coming to the end of their cycles.
New Source: India Times