Delta Corp Ltd to form real estate development platform with Alpha Alternatives Fund Advisors LLP and Peninsula Land Ltd

Delta Corp Limited ("Delta Corp") is proposing to pursue the establishment of a real estate development platform (the "Platform") with Alpha Alternatives Fund Advisors LLP and its affiliates (including Arsenio Strategies Private Limited) and any funds managed by Alpha Alternatives Fund Advisors LLP (collectively referred to as "AA Group"), a reputed multi-asset class asset management firm, and Peninsula Land Limited, a listed Ashok Piramal Group company. The Platform will be the parties‟ exclusive vehicle to undertake residential re-development in the Mumbai Metropolitan Region and plotted development in and around the Mumbai Metropolitan Region, Alibaug, Khopoli, Karjat and Pune.

The Platform is proposed to be funded with an aggregate amount of up to INR 765 crores. AA Group, Peninsula Land Limited and Delta Corp propose to contribute up to an aggregate of INR 450 crores (58.82%), INR 225 crores (29.42%) and INR 90 crores (11.76%). Peninsula Land Limited will also provide development management services to the Platform.

Delta Corp will be a strategic partner in the Platform, and bring its long-standing real estate expertise to the Platform, including for selection and development of projects. We expect that this opportunity to co-invest with reputed and experienced joint venture partners will help Delta Corp grow in this sector. Given that this platform ensures larger and less concentrated exposure while limiting our financial contribution and is being undertaken in conjunction with Peninsula Land Limited (in furtherance of the investment we made in them last year), we do not intend to pursue the joint venture earlier contemplated with Peninsula Land Limited.

This opportunity is part of our ongoing investments out of our internal accruals, while remaining debt free, to grow and diversify our business. Our focus however remains on our core businesses of gaming and allied hospitality with majority of our capex and investments being made to expand our core business.

Shares of Delta Corp Limited was last trading in BSE at Rs. 119.05 as compared to the previous close of Rs. 120.20. The total number of shares traded during the day was 691819 in over 8376 trades.

The stock hit an intraday high of Rs. 125.60 and intraday low of 118.55. The net turnover during the day was Rs. 84373253.00.

Source : Equity Bulls

Keywords

DeltaCorp INE124G01033 RealestateDevelopmentPlatform AAGroup PeninsulaLand