JM Financial is all set to buy a sizeable minority stake in Coimbatore-based co-living operator Isthara Parks, reported The Economic Times, citing people familiar with the development, adding that a definitive agreement has already been signed for the same.
With this, JM Financial aims at capitalising on an institutional drive in a largely unorganised room-sharing and accommodation market, said the above-mentioned people, as mentioned in the report.
The deal, the report said, will be announced soon and will be executed using funds that are committed from JM Financial India Fund II. The report added that Isthara will use the funds for expansion to other cities in the country.
“The agreement has been signed. JM will be taking a significantly large exposure and will have representatives on board. The deal may get announced as early as tomorrow,” one of the sources was quoted as saying in the report.
“The company plans to add about 10,000 beds in the next 12 months. The idea is to take long-term lease on real estate assets and providing fully-furnished co-living spaces,” added the ET source.
When contacted by the paper, both JM Financial Fund and Isthara declined to comment.
First Published: Jun 25, 2019 9:18 AM IST
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