Yatra Capital invests Rs 175 cr in Bangalore Property

March 28, 2008	(Be the first to rate this story!)  Loading ...
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Despite fears of slowdown, investments in the Indian properties continue unabated. The Euronext-listed real estate investment company Yatra Capital has invested nearly Rs 175 crore in Bangalore-based property developments.

Yatra has invested Rs 111.62 crore in Palladium Constructions, which will develop a mixed complex of retail and residential buildings, for a 30 per cent stake. Yatra has also invested Rs 63.44 crore in another entity Platinum Hospitality Services for a 30 per cent stake. Platinum will develop a hotel in Bangalore.

Yatra has committed Rs 914.62 crore of Rs 1,375 crore of the capital it has raised. The company has invested in nine real estate projects/entities so far. Palladium Constructions will develop a 1.9 mn square feet of mixed use complex of retail and residential buildings. The development will comprise 1.4 mn square feet of retail space and 0.5 mn square feet of residential space. The project cost is nearly Rs 950.12 crore, the company said.

Platinum Hospitality Services will develop a 0.5 mn square feet hotel property, including serviced apartments. The hotel will be built at a cost of estimated Rs 402.62 crore. Construction on both properties is expected to begin in the last quarter of 2008 with the entire project expected to be completed in five years, the company said.

Yatra invested Rs 23.31 crore for 0.47 per cent equity in Phoenix Mills in 2007. Betting on returns of over 25% in Indian properties and stagnancy in realty markets of Western countries, a host of international funds such as Citigroup, Blackstone and Morgan Stanley have invested in Indian properties. According to estimates, nearly Rs 20,000 crore has been invested by international and domestic private equity funds in the Indian property market in 2007.

News Published Under:   Real Estate India, Bangalore |

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