The Hindu Business Line : REIT Asset plans $500 m investments

Kolkata, Nov. 7 REIT Asset Management, a UK based private property company managing real estate assets worth $7 billion globally, plans to invest $500 million (nearly Rs 2,000 crore) in various real estate projects across India in next three to five years.

“We plan to build an investment portfolio of $500 million for real estate projects in India. So far, we have committed $50 million (nearly Rs 200 crore) investment in India,” Mr Prasanna Desai, Director, REIT Property Management India, told Business Line.

According to Mr Alex Hayim, Director, REIT Property Management India, depending on the nature of the project, location and partner, the investment could be scaled up to $1 billion (nearly Rs 4,000 crore). In India, REIT plans to take up different types of realty projects including residential, commercial, retail and hospitality projects.

“We have already signed three agreements with a couple of developers from Maharashtra and Kolkata based Eden Realty Ventures. Talks are on with several other developers,” Mr Desai said.

Besides Kolkata and Pune, REIT is also looking at realty projects in cities including Chennai, Nagpur and Cochi.

“We see less value for our investments in primary cities. But that does not mean we will not take up projects in the metros but our focus will be on tier II cities like Kochin and Nagpur,” Mr Hayim said.

On returns, he said that the company expects a “reasonable return” but declined to give any numbers.

In Kolkata, REIT has partnered Eden to develop a couple of real estate projects. The first project, Eden City, is a mega housing project at Maheshtala in south Kolkata. The first phase of the project, launched here today, is spread over 22 acres of land with 2,188 flats.

According to Mr Sachchidanand Rai, Managing Director, Eden, “the Mahestala project will be completed in three phases and would require investment of nearly Rs 1,000 crore. The second project involves redevelopment of a refugee colony in Bonhooghly opposite Indian Statistical Institute in association with the state Refugee Relief and Rehabilitation department. REIT is a majority partner in both projects.

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