Peninsula Land to invest 2,500 crore in Indian Realty Sector

December 5, 2006	(Be the first to rate this story!)  Loading ...
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The Ashok Piramal Group unveiled plans invest 2,500 crore in booming Indian realty sector over the next two years. The conglomerate is poised to grab potential investment opportunities in commercial as well as residential real estate projects. It has also shown an inclination towards taking up the construction work of IT parks and SEZ zones as these projects have a greater potential for infrastructure development.

The group has floated a special purpose company Peninsula Realty Fund (PRF) to fund the capital required for the projects. However, the company has received a nod from the cabinet committee on economic affairs regarding its request for bringing around Rs 1,500 crore as foreign direct investment in Indian real estate.

About another Rs. 500 crore expected to be raised from the domestic investors will be used for investment in different real estate projects. The company is ready to officially launch the domestic fund in the next week but its international funds will be launched in the month of January next year.

The company aims to use the proceedings in real estate projects in Tier-II cities including Delhi, Mumbai, Pune, Ahmedabad, Hyderabad, Bangalore, Chennai, and Kolkatta, as learnt from an industry source.

Visualizing the rat race for office spaces and concept of malls that are upcoming revelations of today’s shopping enthusiasts; Ashok Piramal Group reveals its being bullish about commercial developments.

The Ashok Piramal group is already enjoying a substantial presence in retail business through its group company, Piramyd Retail.  A majority of PRF’s investments will be operated through special purpose vehicles floated by real estate companies, where the fund will have equity participation.

However, the company’s directors have kept their lips closed concerning the nature of the investments. The Group has three businesses - Peninsula Land, Morarjee Textiles and Piramyd Retail.

News Published Under:   Real Estate India, Foreign Direct Investment in India, Special Economic Zones, Real Estate Developers |

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