Lehman to Invest $300m in R&D SEZ

One of the leading US based investment banks and global financial services, Lehman Brothers is all set to carve a niche for itself in Indian real estate. The firm will make its first move with a handsome investment of $80 million in a Bangalore based 404 hectare research and development of SEZ Gandhi City.
ILFS Investment Managers, the private equity arm of IL&FS is also drawing plans to co-invest $20 million in the SEZ along with Lehman Brothers.
The project will not be the limit for the company. It is just to set on course to pave the ways for more investments and a step to gain substantial position in Indian property market, say sources.

Lehman Brothers may eventually make investments up to $300 million in the SEZ, in two tranches. However, the company's plans to utilize the remaining $220 million are not known yet.

Lehman will take the SPV route and both sides are thinking to sign the term sheet in the coming months. Lehman's exact stake is not known. However, the sources say about the investment banking outfit to acquire the major stake in the SEZ.
Gandhi City will be the first major investment of the firm and will be lead by a team of real estate professionals and entrepreneurs holding vast experience in the industry. It includes the name of Giri Devanur, the founder of Ivega Corporation, ex-Infocisian Manohra Nagaraja, Arjun Valluri - CEO of Intelligroup.

The city also boasts of creating a large pool of job opportunities for around 10,000 people. In addition to attracting big ticket investors looking to locate R&D facilities, the shift will serve as an incubator for new ventures.
Other renowned names who will be forming the management team of the proposed SEZ are Sunil Khairnar, Sunil Khairnar, Shiv Dayal, Bhaskar. G, Sanjeev Rao and Madhura Nath. The SEZ has received a nod from the board of approvals which clears the SEZ applications, says the commerce ministry's website.