Homegrown private equity fund IL&FS PE is in talks with global PE funds Brookfield, ISquared Capital and Macquarie to sell its majority stake in Bengaluru-based real estate developer QVC Group. The company that is around 75% owned by IL&FS PE is being valued at about Rs 400-500 crore, said three people with direct knowledge of the development.

IL&FS PE had picked up around 75% stake in QVC Realty for $100 million in 2008. The company that was formed in early 2007 was the first VC-backed real estate firm formed by Prakash Gurbaxani.

QVC Realty is currently developing a luxury villa project in Bengaluru, and two integrated townships in Gurgaon. They also have projects in Chikmagalur (Karnataka). The company that has a joint venture with South India-based large real estate developer Sobha LtdBSE 0.73 %., and North India-based Uppal Group has already returned significant of the capital to IL&FS as and when its projects got sold out.

“IL&FS PE is eyeing a return of 2x on the 10-year old investment it made in the company,” said one of the persons with direct knowledge of the deal. The enterprise value of the company stands at Rs 450-500 crore and investment bank EY India is helping IL&FS look for buyers.

In a telephonic interview, Prakash Gurbaxani confirmed that the deal is on to look for buyers of IL&FS’ stake in the company. “Yes, IL&FS is in talks with PE funds as the fund life is coming to an end and an exit is imminent,” he said. He, however, declined to comment further on the interested buyers and the valuation. “The current promoters will continue to hold stake in the company,” he said.

Spokespersons for Brookfield, Macquarie, ISquared and IL&FS Investment Manager did not respond to emailed queries from ET till the time of going to press.

QVC, one of the few real estate companies with no debts on its books, has been battling project delays and cost escalations that have affected the entire real estate industry since the slump of 2009.