The Hindu Business Line : Indiareit Funds plans raising Rs 3,800 cr

Snapshot
Currently, Indiareit manages a corpus of about Rs 1,800 crore, which includes an offshore fund, in which 3i, a major private equity and venture capital firm, is a cornerstone investor.

S. Shanker

Mumbai, Nov. 16 Ajay Piramal Group promoted Indiareit Fund plans to raise Rs 3,800 crore through domestic and offshore offerings by March 2008.

Of this, Rs 3,000 crore is an offshore fund slated for January. The domestic version will follow in March, said Mr Ramesh T. Jogani, CEO and Managing Director, Indiareit Fund Advisors.

Currently, Indiareit manages a corpus of about Rs 1,800 crore, which includes an offshore fund, in which 3i, a major private equity and venture capital firm, is a cornerstone investor.

Over 70 per cent has been deployed and of eight projects in progress, the fund managers have initiated the process of a partial exit in three. “Strategic exits in a Bangalore retreat comprising villas, a commercial property and a residential venture in Mumbai have raked in returns of 2-2.5 times, within a span of two years,” said Mr Jogani.

The real estate venture capital fund’s first domestic float was Rs 430 crore, with a ticket size of Rs 1 crore last year, was followed by a second of Rs 700 crore with a Rs 25-lakh ticket size, besides an offshore fund of Rs 800 crore.

The ticket size helped draw 75 per cent of the investment from high networth individuals. This time around the fund managers are confident of institutional support for the second offshore offer. By sheer size, institutional support is essential, said Mr Jogani.

The fund advisors, with a repertoire of select consultants, have been able to offer value added services such as marketing to developers. It has also facilitated tie-ups with international architects for a couple of projects, helped raise debt for developers and for integrated developments encompassing malls, provided assistance to zero in on anchor tenants.

The fund is looking to get into a 100-acre residential township in the coming days, besides a host of projects across metros.

More Stories on : Venture Capital | Real Estate & Construction

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page