HDFC Property Fund is planning to sell stakes in three residential projects back to developers in the coming months, a fund executive and two other people familiar with the situation said. The fund will exit with returns of around $110 million on an investment of $40 million," the executive said. The fund will sell part of its stake in a project by Lodha Developers Limited in Hyderabad back to Lodha Developers, and its entire stake in projects by Sterling Developers Pvt.

Ltd. in Bangalore and Paranjape Schemes (Construction) Pvt. Ltd. in Pune, he said. Abhishek Lodha, Managing Director of Lodha Developers, told Mint that he wouldn't comment as the exit hasn't taken place yet.

Ramani Sastri, Chairman and Managing Director of Sterling Developers, said HDFC Property Fund will sell back either all or part of its stake in the Bangalore project in 2013, and any remaining stake in 2014."The project is going on well, and around 60% of the project has been executed," Sastri said. "Discussions on the exit are currently not on," Shashank Paranjape, Chairman of Paranjape Schemes, said although the executive of HDFC Property Fund confirmed plans for the stake sale.