UK, Israel Real Estate Firms to Invest $400m in India

March 14, 2007	(2 votes, average: 4 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Indian real estate industry that saw $1 billion being pumped by foreign real players has got two more new entrants with UK-based Plaza Centers NV and Israel’s Alony Hetz. These firms are planning to invest approximately $400 million.

These companies have acquired major stakes in real estate projects floated by textile company Wearology, Pune-based real estate developer Panchshil group and Avinash Bhosale group, to develop FDI complaint property projects in Mumbai and Pune.

According to sources, Alony Hetz, a leading Israel based property developer, is interested in holiday home projects worth over $200 million with various Indian builders. He also plans to build a $160-200 million 450,000-square meter second home holiday house project in a joint venture with Wearology at Karjat near Mumbai.

Alony Hertz has raised NIS (New sheqel) 500 million through a bond issuance to institutions to make investments in India.

And the Managing Director, Wearology, Deepak Poddar, has confirmed the joint venture project with Alony Hertz. He said they are developing around 200 acres in Karjat in a joint venture with Alony Hetz and LJCB investments, which will be luxury homes project.

India real estate market experts said that, the expected volume of residential property investments in India is $40 billion while the volume of investments in infrastructure is estimated to be around $65 billion.

Where as for the next five years the annual demand for office space is projected at 2 million sq meters and around 80 percent of the office space has already been leased to major firms.

Plaza Centers NV, a leading UK based real estate firm, has acquired equity holding in two JV projects in Pune worth $300 million. The realty market in India was opened to foreign investors (FDI) in mid 2005.

Even, Sir Tom Hunter, Scottish entrepreneur; Baugur, investor from Iceland, and Britain’s HBOS have teamed up to finance a $100 million fund set up by pan-European property group Catalyst Capital.

The group will invest for hotel development, house-building and land acquisition in and around Mumbai but later they will scout for properties in other cities.

News Published Under:   Real Estate India, Real Estate Developers |

Comments