FIIs to pump in Rs 30k cr in Indian Realty Sector

December 2, 2006	(Be the first to rate this story!)  Loading ...
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Following the rising trend towards the globalization of Indian real estate, Foreign Institutional Investors (FIIs) are positioning themselves to bring in fresh funds of over Rs. 30,000 crore in the residential property market in Tier-II cities by the next two years.

Foreign investors have already made the significant investments of about Rs. 10.000 crore in the booming market of Indian real estate in the past two years. Now, global players like Morgan Stanley Real Estate Fund, Warburg Pincus, Merrill Lynch and Lehman Brothers have lined up millions of dollars each to offer to the sector.

Other real estate funds that are planning to follow the footsteps include the renowned names like AIG Real Estate, Triconal, Xander, and Saffron, who are all set to pump in around 500 crore each in the sector.

However, they don’t want to enter into the arena solely and are in a look out for the potential partner to get into the hot market through joint venture route.

Industry experts believe that Tier II cities are facing a critical housing shortage for the past few years. Hence, the fresh funds are aimed to develop quality residential properties across these cities.

Sources recalled HDFC India Real Estate Fund (HI-REF) picking up a 10% equity stake in the Pune-based real-estate firm Vascon Engineers for Rs 140 crore. In Chennai, Sun Appolo has entered into a joint venture with Sriram Projects for $200 mn.

Aiming at developing residential, commercial and retail properties in Tier-II cities, TrammelCrow and Company is ready to lay the foundation of its real estate conglomerate in India.

News Published Under:   Real Estate India |

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