Business Daily from THE HINDU group of publications
Friday, Sep 08, 2006
Business Daily from THE HINDU group of publications Friday, Sep 08, 2006 |
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Government - Policy Industry & Economy - Real Estate & Construction Markets - Venture Capital Our Bureau
Investment route Proposes to raise $750 m through the international scheme, out of which $720 million would be raised from international investors. The balance $30 m would be contributed by HDFC by subscribing to the units of the international scheme.
New Delhi , Sept. 7 India Offshore Real Estate Investments, a company incorporated in Mauritius, has been permitted to invest up to $720 million in the units of HDFC International Real Estate Fund, which would in turn invest in Indian companies. The HDFC International Real Estate Fund (the international scheme) is the third scheme of HDFC Property Fund, which is a SEBI-registered venture capital fund (VCF). The Cabinet Committee on Economic Affairs (CCEA) approved this investment proposal here on Thursday. This would result in foreign direct investment (FDI) of about Rs 3,240 crore in the country, an official spokesperson said. HDFC property fund proposes to raise $750 million through the international scheme, out of which $720 million would be raised from international investors, financial institutions, multilateral agencies and high net worth investors situated across Europe, North America and Asia. These international investors would be pooling their investment into India Offshore Real Estate Investments. The balance $30 million would be contributed by HDFC by subscribing to the units of the international scheme. The units issued by the international scheme would have face value of Rs 1,000 each. The CCEA approval is, however, subject to certain conditions. Investments by HDFC Property Fund would be subject to FDI policy in the real estate sector, including non-permissibility of repatriation of original investment before three years from completion of minimum capitalisation. The investments would have to comply with both RBI and SEBI guidelines. The HDFC International Real Estate Fund is to be managed either by HDFC Venture Capital Ltd or by a different entity from within the HDFC Group. HDFC Property Fund was set up in 2005 and has launched two schemes over the last one year. The first scheme, HDFC India Real Estate Fund (HIREF) has a corpus of Rs 1,000 crore and invested in commercial, residential, hospitality, integrated township and other associated sectors across the country. The second scheme, HDFC IT Corridor Fund has a corpus of Rs 464 crore and invested in information technology infrastructure assets across major towns in the country.
Related Stories: More Stories on : Foreign Direct Investment | Policy | Real Estate & Construction | Venture Capital
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