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Mangalore, Aug. 29

THE Rs 500-crore real estate venture capital fund of AnandRathi group will be ready for investments by the end of September.

Addressing newspersons here on Monday, Mr Manoj Shenoy, Regional Director of AnandRathi, said that the group is in the process of setting up a Rs 500-crore real estate venture capital fund. The fund will be closed by the second week of September and will be ready for investment by the end of that month.

The fund will be like a balanced fund where 50 per cent will be invested in pre-leased properties.

The remaining amount will be invested in real estate projects such as residential projects and those projects that are at the stage of land acquisition.

The amount will be invested in those residential properties wherever the saleable value of the property is at around Rs 20 lakh.

Asked about the reasons for this, he quoted a study by the Nasscom where it was stated that nearly three million people are likely to own houses in a few years.

To a query on the returns, Mr Shenoy said that 20 per cent to 25 per cent of annual returns are expected from the fund.

Mr Shenoy inaugurated the eighth branch of AnandRathi group in Karnataka and the 130th in the country at Mangalore on the occasion.

The plan is to open a total of 20 branches in Karnataka by the end of the current fiscal.

"Launching of the Mangalore branch is in line with our strategic plan for horizontal expansion in the key cities of the country," he said.

(This article was published in the Business Line print edition dated August 30, 2005)
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