Goldman Sachs to invest $1 billion in Indian Real Estate

November 28, 2006	(1 votes, average: 3 out of 5)  Loading ...
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Goldman Sachs, one of the world’s most prestigious global investment banks, will invest as much as $1 billion in the Peninsula Realty Fund (PRF) promoted by Ashok Piramal in next couple of years as it oversees unparallel growth prospects for Indian real estate.

The company is planning to launch the PRF soon. However as a part of the policy, the company is not yet ready to disclose any speculative news to media. The proceedings are in fairly advanced stages of development and the two conglomerates are expected to sign a deal early next month, say industry sources.

PRF is all set to float Rs. 1500 crore special purpose vehicle to put in FDI compliant realty and infrastructure projects in India. There has been a rumour going around regarding Goldman Sachs to invest in this SPV.

PRF, launched by Peninsula Land Ltd, the flagship company of Ashok Piramal Group aims at promoting investments in the rapidly increasing and promising Indian realty sector. The company plans to float two separate schemes.

One of the proposed schemes will provide the domestic investors with the prospects to invest whereas the other scheme will seek the contributions in FDI compliant SEZ and industrial parks projects.

Driven by positive growth in the economy, real estate in India is booming, and is on everyone’s mind today. This is what encouraging this global investment bank to invest such a huge amount in this productive sector, says Goldman Sachs India LLC CEO L Brooks Entwistle.

He added that the Indian market is vitally important to the company as it holds great value and drastically changing its image. Goldman Sachs is also looking forward to begin its own investment banking and securities business in India after breaking a decade-long alliance with Kotak Mahindra in March, where it held stake in two of the bank’s financial services, Kotak Mahindra Capital Ltd and Kotak Securities Ltd.

News Published Under:   Real Estate India, Banking and Finance |

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