Will raise our stake to 28% in Indiabulls Real Estate eventually, says Embassy Group’s Jitu Virwani

Indiabulls Real Estate promoters have sold around 12 percent stake in the company to Embassy group on June 7. Jitu Virwani, CMD of Embassy Group, shared his views on the deal.

“We will pick up 28 percent in Indiabulls and try to synergise both our businesses between Embassy and Indiabulls and take the company forward. We were at the right time at the right place. As far as Indiabulls is concerned, they needed to exit realty business and I think there wasn’t anybody who would turn things around as fast as we could turn the things around. It synergises the business we have, it gives us a great platform in Bombay and in the NCR area where we have been trying to make in-roads for a long time. We met Sameer Gehlaut for the first time on Wednesday and today is Friday we have done the deal,” Virwani told CNBC-TV18 on Friday.

Speaking about transferring assets into the REIT, Virwani said, “Once we buy this 28 percent and take over the management that would be the next step. The assets – close to about 2.3 million, I don’t have the exact number.”

On the initial public offering (IPO) plans, Virwani said, “As far as Indiabulls is concerned, it is already a listed entity. So I don’t think I have to do anything over there. It is a very well-run company, it has very good assets, good quality of assets, it has a good financial trend behind it and we think that it needs a little bit of a realtor’s touch to take things ahead and take the prices up.”

“We are always funded by on our own and by either debt from banks or by selling some of our assets. Partnership with Blackstone brings a lot of credibility, stability through all the businesses we do along with them. Listing Embassy – no, I don’t think Embassy would go public,” he said.