Indiareit to launch $300m fund next month, makes two investments


IndiaPiramal Enterprises’ private equity arm Indiareit has invested INR2bn ($36.6m) in real estate projects across India from its two funds and is reportedly set to launch a $300m offshore fund next month.

The offshore fund initially targeted $500m, but Indiareit managing director Khushru Jijina told the Business Standard that $300m is more appropriate given the current market conditions.

Additionally, Indiareit is planning to tap investors for INR2bn for its fifth domestic fund in the next three months.

The fund totals INR7.5bn and has a green shoe option for a further INR2.5bn, said the Business Standard.

The firm also said it has invested $18.3m in a project in Mumbai developed by Omkar Realtors from its INR4bn Mumbai Redevelopment Fund. This is not the Indiareit’s first investment in Omkar, which received INR2bn from the firm in September 2011.

The other INR1bn was invested in Marvel Group from Indiareit’s INR9bn Domestic Scheme IV fund. Marvel is currently working on several projects in Pune, Balgalore and Mumbai.

Jijina said, “Both these transactions are representative of the attractive returns that we are able to structure in the market today, with the added benefit of mechanisms in place to protect downside and provide adequate security cover.”

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