Realty, Hospitality Sectors Attract (PE) Funds

February 25, 2008	(Be the first to rate this story!)  Loading ...
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With IT projects taking a backseat on the investment front, private equity (PE) funds are cosying up to residential, commercial and hospitality spaces in South India.

Pragnya, a Mauritius-based private equity fund focused on the real estate market in India, has so far invested about $40 million in realty projects, including an integrated township project by L&T in south India, and expects its investments to reach $100-110 million this year. It is also planning to come out with a $150-million Pragnya Fund 2, which will invest in realty and hospitality projects, particularly in the South.

In December 2007, Red Fort Capital, a global real estate private equity fund, announced a Rs 400-crore investment plan for Chennai’s realty market over the next six months. It has acquired 10 acres of land for a large residential project in Chennai. The company has already invested Rs 1,200 crore on projects in Bangalore and Hyderabad.

Hospitality projects in the region are also attracting private investments. Last month, Sabari Inn, which promoted two boutique hotels in Chennai, secured investments of Rs 62 crore from ICICI Prudential PMS Real Estate Securities Fund to fuel its growth plans.

ICICI Prudential PMS Real Estate Securities Fund, which has about Rs 800 crore under management, is also reported to have lined up investments of about Rs 150 crore in various projects to be announced soon.

News Published Under:   Real Estate India |

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