Old Mutual Plans Entry into the Indian Retail Sector

March 5, 2008	(Be the first to rate this story!)  Loading ...
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Old Mutual is planning into the Indian retails sector through a property fund. The $4.5-billion have earlier been into life insurance and property services.

The property arm, the South Africa-based Old Mutual Investment Group Property Investments (OMIGPI) and a Mumbai-based real estate company ICS Realty, have promoted a $500 million property fund, which is expected to close by March 31.

The fund, called Triangle India Real Estate Fund, is aiming at investors (both high net worth individuals and institutions) in Europe, West Asia and South Africa.

‘‘We are targeting returns of 20 per cent to 30 per cent,’’ said Deep Kantawala, director of Property Zone, the advisor to the fund in India. The fund has an eight-year term, with an option to extend it by two years.

Though the fund has a mandate to invest in retail, commercial and hospitality sectors, it would put 60 per cent of its corpus in the retail sector to take advantage of the merchandising boom in the country.

‘‘There is a huge opportunity in Indian retail sector and the promoters wanted to capitalise on their expertise in this space,’’ said Kantawala.

News Published Under:   Real Estate India |

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