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IndiaBulls Real Estate – Underperformer

May 12, 2008

After Merill Downgraded IndiaBulls Financial Services, Credit suisse has downgraded IndiaBulls Real Estate [IBREL] to UNDERPERFORM.

IBREL has filed the prospectus with the Singapore exchange for the listing of Indiabulls Properties Investment Trust (IPIT), which will hold an initial portfolio comprised of IBREL’s One Indiabulls Centre and Elphinstone mills projects, which together comprise 3mn sq ft of commercial, 0.44mn sq ft of retail and 0.12mn sq ft of residential space, along with 6,500 parking spaces.

IBREL will hold 45% stake in IPIT, receive cash from part sale of its stake in the assets and leasing management and trustee fees. Credit Suisse estimates the value of IBREL’s stake in the two assets to be worth anywhere between US$1.1bn- $1.46bn thus leaving hardly any scope for upsides.

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