PE arm of Housing Development Finance Corporation, HDFC Property Fund is planning to raise $500 mn real estate offshore fund by end of 2012. The
firm is supposedly in talks with international investors like the
Singapore’s sovereign fund GIC, Qatar Investment Authority along with
American and Japanese investors.
The fund has a net IRR target of over 20% and would be investing into redevelopment projects and commercial development across the metro cities of Mumbai, Chennai, Pune, Bangalore and Delhi, according to a media report.
The fund has a net IRR target of over 20% and would be investing into redevelopment projects and commercial development across the metro cities of Mumbai, Chennai, Pune, Bangalore and Delhi, according to a media report.
HDFC Venture Capital Limited (HVCL) is the fund manager to HDFC
Property Fund managing two schemes of the Fund – HDFC India Real Estate
Fund (Corpus – R1000 Cr) and IT Corridor Fund (Corpus – R464 Cr). The
R1000 Cr seven year domestic fund was raised in 2005 (during which HDFC
entered the PE business with HDFC Property Fund) and has made 16-18
investments so far.
Recently, HDFC Property Fund invested R50 Cr for a 21% stake in Bangalore based Fortuna Projects’ SPV in February. Among other real estate offshore funds in the pipeline, there is ASK Property Investment Advisors, the property fund arm of ASK Group, which had planned to launch $200 Mn international real estate fund next month, Red Fort Capital had raised $500 Mn from overseas investors in January for its Red Fort India Real Estate Fund II with half the corpus already invested.
In February, JP Morgan announced the raising of $500 Mn India focused offshore realty fund, Tata Realty and Infrastructure had planned to tap domestic and overseas investors for acquisition and creation of malls to form a mall chain this month and Piramal Healthcare’s real estate fund, Indiareit Fund Advisors was also planning to raise $500 Mn offshore fund to invest in Indian development projects.
Property consultant JLL had stated that post FDI being allowed in real estate in 2005, India received investment of $14 Bn and funds witnessed an exit of around $2 – 3 Bn in the last four years.
The fund raising plans also comes on the back of Federal Reserve’s announcement to boost liquidity by the QE3 mechanism along with the ECB injecting more money for liquidity purposes.
Recently, HDFC Property Fund invested R50 Cr for a 21% stake in Bangalore based Fortuna Projects’ SPV in February. Among other real estate offshore funds in the pipeline, there is ASK Property Investment Advisors, the property fund arm of ASK Group, which had planned to launch $200 Mn international real estate fund next month, Red Fort Capital had raised $500 Mn from overseas investors in January for its Red Fort India Real Estate Fund II with half the corpus already invested.
In February, JP Morgan announced the raising of $500 Mn India focused offshore realty fund, Tata Realty and Infrastructure had planned to tap domestic and overseas investors for acquisition and creation of malls to form a mall chain this month and Piramal Healthcare’s real estate fund, Indiareit Fund Advisors was also planning to raise $500 Mn offshore fund to invest in Indian development projects.
Property consultant JLL had stated that post FDI being allowed in real estate in 2005, India received investment of $14 Bn and funds witnessed an exit of around $2 – 3 Bn in the last four years.
The fund raising plans also comes on the back of Federal Reserve’s announcement to boost liquidity by the QE3 mechanism along with the ECB injecting more money for liquidity purposes.
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