Piramals Group Setting Up Second Real Estate Fund Amounting 500cr

September 17, 2009	(Be the first to rate this story!)  Loading ...
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Indiareit Fund Advisors, which is promoted by the Piramal Group, is setting up its second real estate fund with a corpus of Rs 500 crore and expects to raise the money from investors by the end of this year. The group had earlier floated Indiareit Fund, a $450-million (Rs 2,025 crore at current exchange rates) real estate fund in 2006 and the proposed new Rs 500-core fund is over and above this. The Piramal Group has a presence in sectors, such as healthcare, diagnostics, glass manufacturing and real estate.

Said Ramesh Jogani, managing director and CEO, Indiareit Fund Advisors: “The Piramal Group is setting up a new domestic real estate fund and we are in the process of raising an overall corpus of around Rs 500 crore for it. This fund will invest in projects in Mumbai, New Delhi and Alibaug, a tourist town near Mumbai, and will be restricted to the residential segment. The new fund, apart from having a real estate focus, may also invest jointly with the existing fund.” It is learnt that the Rs 500 crore will be raised from high net worth individuals (HNIs) and institutional investors, with 90% coming from HNIs and the balance from institutional investors. The funds, added company officials, will be raised only from Indian citizens.

The officials said some real estate projects, where the money could be invested, have been identified and the new fund will look at a 20% return on investment on a per annum basis. Indiareit has already invested Rs 1,500 crore in residential projects in Bangalore, Chennai and Mumbai and Alibaug. The fund is said to be keen on investing in Samira Habitats, a Mumbai-based realty firm.

News Published Under:   Real Estate Trends |

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