AIG to sell Indian AMC business to Canadian fund
Jan 03, 2014
Source : The Economic Times

 

BANGALORE: AIG Global Real Estate has agreed to sell its Indian asset-management business to Brookfield Asset Management as the New York-based privateequity fund of American International Group is closing its operations in the country, a person with direct knowledge of the deal said.

The assets that AIG Global Real Estate India Advisors manage in India will be transferred to Brookfield Asset Management, a Canada-based fund manager. Under the deal, Bamasish Paul, the India MD of AIG Global Real Estate, will join Brookfield Asset Management as a senior vice-president and will continue to manage the portfolio , the person said.

"AIG India fund is closing down completely as the fund has no short-to-medium-term plans for India," the person said. All four employees of the AIG fund in India will join Brookfield Asset Management, he added. He didn't provide any financial terms of the deal. Brookfield Asset Management and AIG Real Estates India Advisors didn't respond to emails from ET seeking comments.

Paul is likely to report to Anuj Ranjan , senior vice-president and country head at Brookfield Asset Management in India. Paul has 15 years of experience in private equity and real estate in the country.

The transaction will be completed by the end of this month, the person with knowledge of the matter said. Acquiring this business will help Brookfield Asset Management build its real-estate platform in India. "AIG's real estate platform is a stepping stone for Brookfield. Globally, Brookfield has a huge offshore fund and is looking to allocate money independently from it into Indian real estate," he said.

"The buyout is a good decision as it will help an established team like Brookfield leverage and help AIG exit some of its previous investment," said Sanjay Dutt, executive managing director for South Asia at Cushman & Wakefield.

Between 2007 and 2009, the AIG fund invested $200 million across five projects from its $300 million India fund. It has exited from three projects of RMZ till date —a mixed-use project in Bangalore and a commercial property in Kolkata as well as a 75-acre plot in Kochi.

The fund remains invested in Hyderabad and Chennai projects. Globally, the fund manages $13.6 billion of real estate for clients and AIG companies. Brookfield currently has floated a Rs 1,000-crore real-estate fund with Mumbai's Peninsula Land to invest in projects across top cities. It has a presence across construction, investment brokerage and global relocation services.

Globally, the alternative asset manager manages more than $175 billion in assets.

 

Latest Realty News

Novartis India strikes 8.7 lakh square feet office space deal in Hyderabad
Jan 03, 2014
BANGALORE: Pharmaceutical firm Novartis has picked up 8.7 lakh square feet of office space in Hyderabad in a bid to consolidate its operations in the city.
HNIs bail out realtors, but for high returns
Jan 01, 2014
BANGALORE/NEW DELHI: Some ultra-rich Indians have found a new way to bypass the economic slowdown and make mega returns on their investment. According to analysts and industry players, real-estate developers across the country are being bailed out by high net worth individuals (HNIs) by offering short-term loans to meet developers' funding requirements to finish ongoing projects.
‘Don’t treat aerospace park in Bangalore as a real estate project’
Dec 31, 2013
BANGALORE: The aerospace industry in Bangalore has the potential to achieve $20 billion in revenues over the next 10 to 15 years if the state government is able to nurture an ecosystem that attracts global companies, said the India head of UTC Aerospace Systems (UTAS).
Prestige ties up with Disney for branded homes
Dec 30, 2013
BANGALORE: Southern real estate major Prestiqe Estates Projects is collaborating with Disney India to develop its largest residential township project spanning 102 acres in Bangalore's IT hub of Whitefield.
High-end homes gain prominence in East Bangalore
Dec 28, 2013
BANGALORE: In the mid-1990s when the road to far-off Whitefield was upgraded, it was rumoured that a delegation visiting the site that ITPL was to come up on had agreed to put up the tech park in the location only if the road infrastructure was upgraded to reduce travel time from the Vidhana Soudha to ITPL, to 10 minutes. From then on, there has been a focus to upgrade civic infrastructure in the east – the widening of several key roads, the completion of the Outer Ring Road (ORR) and ongoing wo
Green tribunal asks industries in TG Halli zone to pack up
Dec 26, 2013
BANGALORE: The National Green Tribunal (NGT), Southern Zone, Chennai, has asked over a dozen industrial units to move out machinery and materials from Zone-3 of Thippagondanahalli reservoir catchment area (TGR) within three months. This eco-sensitive zone has a number of granite units.
Bangalore corners 42% of Rs 4,716 crore realty funding
Dec 24, 2013
BANGALORE: The country’s IT capital has attracted the lion’s share of private equity (PE) investments in the real estate sector, approximately 42% of Rs 4,716 crore (roughly $755 million) of the investment that has flowed in between January and September this year.
Office space absorption in Bangalore lower in 2013
Dec 22, 2013
BANGALORE: Bangalore witnessed a large drop in office space absorption of 39 per cent in 2013 as compared with last year. The city office space absorption this year is around 45.76 lakh square feet as against 75.17 lakh square feet last year.
BDA: 146 unauthorized layouts have sprung up at TG Halli
Dec 21, 2013
BANGALORE: The BDA on December 17 informed the Karnataka high court that 146 unauthorized layouts have come up in 23 villages in Tippagondanahalli reservoir zone – III area, 1km on either side of the Arkavathy river.
Panel to monitor action on TG Halli encroachments in Bangalore
Dec 21, 2013
BANGALORE: The Karnataka high court on December 18 constituted a seven-member special committee headed by V Umesh, additional chief secretary, to monitor action on encroachments in Zone-III of Tippagondanahalli reservoir (TGR) catchment area.

Latest Realty News Of State

Realty Talk's