Citigroup to Invest $400 mn in Indian Real Estate

April 23, 2007	(Be the first to rate this story!)  Loading ...
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The real estate investment arm of Citigroup is planning to invest around $400 million of equity from a recently raised fund in India and $600 million in China. The fund envisages developing hotels, technology parks, and housing estates.

Citigroup property investors closed a $1.29 billion Asia opportunities fund in February. Of this total amount, 40% was allocated to the real estate projects it has already begun.

India is attracting a various forms of other investments. There is an outstanding market for every segment of the real estate including residential property, commercial property, and retail sector, says the unit’s Asia head, David Schaefer, adding that he travels to India about once a month.

Citigroup has joined hands with seven Indian property developers including the prominent names such as Nitesh Estates for the development of a $100 million luxury hotel in Bangalore, and Gera Developments, for a $125 million housing complex in Pune.

The fund also looks towards taking up the construction of serviced apartments with US based Portman Holdings and India’s biggest mortgage lender Housing Development Finance Corp, and Technology parks in Bangalore and in Noida.

With the borrowing at on average 50% of a project’s value, and including equity from joint venture partners, the Citigroup fund would share its presence in around $2 billion worth of real estate projects in India, adds Schaefer.

News Published Under:   Real Estate India |

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