MUMBAI: Pune-based Marvel Realtors says it has bought out 49 per cent stake of HDFCBSE -0.79 %Portfolio Management Services (PMS) in its luxury villa and apartment project, Marvel Selva Ridge Estate, for Rs 100 crore. 

The exit will provide absolute returns of 46 per cent to the HDFC Asset Management's division on its investment of Rs 67 crore made in 2011. "HDFC PMS partnered with us in this project at the land acquisition stage itself," said Vishwajeet Jhavar, CEO of Marvel Realtors. "Their entry at an early stage has enhanced the IRR (internal rate of return) to 30 per cent. This was the peak return offered under the preferred structure we had entered into." 

Under this structure, HDFC PMS' peak IRR from the project investment was capped at 30 per cent with the downside protection at 15 per cent. An email query to HDFC PMS regarding its exit remained unanswered. 

Spread over 22 acres, the project near Bavdhan in Pune is said to have a total saleable area of 1.1 million sq ft. The first phase with 400,000 sq ft saleable space is to be completed in the next 12 months and generate revenue of Rs 300 crore. 

Marvel Realtors plans to launch the phase-II of the project with a saleable area of 700,000 sq ft by the end of 2013. This phase is estimated to realise revenue worth Rs 500 crore. Besides Marvel Selva Ridge Estate, HDFC PMS had also invested in Marvel Realtors' SPV that controls six projects in Pune. In March 2011, HDFC PMS invested Rs 80 crore for an aggregate 25 per cent stake in these projects. 

The company may buy out HDFC PMS' stake in these projects in the next one year. However, it has not decided on the valuation of this exit yet, Jhavar said. Recently, HDFC PMS sold its 50 per cent stake in property developer Runwal Group's project in the Mulund suburb of Mumbai for Rs 250 crore.