Business Daily from THE HINDU group of publications
Saturday, Feb 23, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Feb 23, 2008 ePaper | Mobile/PDA Version |
|
|
|
|
|
|
|
Markets
-
Foreign Institutional Investors Web Extras - Real Estate & Construction Our Bureau
New Delhi, Feb. 22 FIRE Capital’s new $500-million real estate fund, its second one for India, is expected to be operational in the next 3-6 months. While the first fund had committed investments in seven township projects, the upcoming fund would invest in a more diversified portfolio that would include hospitality, retail (malls), commercial offices projects besides residential townships, Mr Om Chaudhry, CEO of FIRE Capital Fund, said. “We are currently talking to institutional investors and high net worth individuals to raise the corpus. We are talking to those who had invested in the first fund, but are also planning an expanded investor base this time,” he said. FIRE Capital is eyeing a Return on Investment of 20-25 per cent from the second fund. The first fund, which focused on residential, and mixed-use developments centred around residential use, had committed investments in township projects in Indore, Jaipur, Bangalore, Nagpur, Chennai, Ahmedabad and Dehradun. realty pricesAs much as $150 million was committed for these seven township projects under the first fund. All the investors in the fund were based in the US and more than half the fund size was committed by large financial institutions.
“While all our investors remain convinced about the fundamentals of the Indian market, there are concerns on whether high realty prices in certain pockets are justified. In addition, the investors are concerned about too much capital chasing real estate projects in India. As a fund we are trying to focus on real demand and we will look at the depth of demand while investing, rather than committing on something that just looks good on paper. For instance, we are focusing on middle and upper middle income segment in a big way,” Mr Chaudhry pointed out. More Stories on : Foreign Institutional Investors | Real Estate & Construction
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
 |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|