Improved sentiment gives fillip to money raising by realty funds
The funds and private equity firms are keen once again to provide capital for early stage investments in upcoming projects
Dec 03, 2014
Source : The Hindu BusinessLine


Real-estate-focused funds are now back in the reckoning after a two-year lull and are raising money to invest in mid-segment projects across the country, banking on rising investor confidence and sentiments.

The funds and private equity firms are keen once again to provide capital for early stage investments in upcoming projects.

Ramesh Jogani, MD and CEO, Indian Property Advisors, said, “There was a lull during the past couple of years, even though many firms had raised funds during this period. The heightened activity is on back of the new optimism, coupled with the good investment sentiments. Most of the funds, which had raised and invested the amount, are now looking for raising the next tranche of funding.”

Indian Property Advisors has launched ?350-crore (?250 crore and a ?100 crore greenshoe option) domestic fund 10 days ago.

Residential projects

Most of the funds are being launched for the mid-market commercial segment, he added. Interestingly, micro-markets and affordable residential housing are most popular as categories of investments.

ASK Property Investment Advisors said it is looking to invest in self-liquidating residential projects in Mumbai, Pune, Chennai, Benguluru, Delhi-NCR and Hyderabad.

Managing Director and CEO Sunil Rohokale said the company will stay focused on mid-segment residential projects.

The company expects to complete the fundraising in the next 12 months.

According to a Lias Foras report, 34 per cent of residential sales happened in the cost bracket of ?50 lakh to one crore.

Piramal Fund Management has raised ?500 crore for its ‘Indiareit Apartment Fund’, surpassing its initial size of ?350 crore. The company is aiming a final close at ?700 crore.

Khushru Jijina, Managing Director, Piramal Fund Management said, “With the Apartment Fund, we have consciously added another product to our suite of offerings.”

Latest Realty News

Sebi bars two firms from raising funds from realty schemes
Dec 02, 2014
MUMBAI: Pulling the plug on illicit real estate investment schemes, markets regulator Sebi has restricted two firms
RBI Monetary Policy: Realty sector says it is a lost opportunity
Dec 02, 2014
Mumbai: Real estate sector player and industry watchers say an interest rate cut could have set a trigger for housing sales
Real estate site raising $50 million more from existing investors
Dec 02, 2014
NEW DELHI: Real estate site is raising another $50 million (Rs 310 crore) from existing investors New Enterprise Associates (NEA) and Foundation Capital
PE fund Premji Invest makes first real estate bet
Dec 02, 2014
BENGALURU: Private equity firm Premji Invest has invested Rs 70 crore in Bengaluru-based property developer Total Environment in its first bet in real estate
For its casual attitude, Mhada directed to pay Rs 25,000 as adjournment costs by green tribunal
Dec 02, 2014
MUMBAI: The National Green Tribunal slammed the state Housing Board for mechanically adopting a stand taken by a private developer in its affidavit in an environmental clearance dispute
DB Group's hospitality arm, Sheth Creators in joint venture talks for south Mumbai project
Dec 02, 2014
MUMBAI: DB Group's hospitality arm is in advanced talks with another Mumbai-based developer Sheth Creators for an agreement to jointly develop a high-end sea-facing residential project
Real estate developers oppose GO 398
Dec 02, 2014
Vijayawada: Andhra Pradesh Real Estate Developer’s Association (APREDA) took strong exception to a portion of the GO 398 issued by the State government
Roadside deals, cash payments rule Pune’s fringe realty market
Dec 02, 2014
PUNE: The business of illegal constructions on the city's fringes is thriving on anticipation, that of these villages merging with Pune civic limits one day
Multi crore land scam investigation hits road block as main accused flies out of country
Dec 01, 2014
GAYA: Ongoing investigation in the multi crore land scandal in which members of the disadvantaged sections (read Mahadalits) were allegedly duped and subsequently deprived of prime land allotted to them by the government
Will make land records in Capital city foolproof: Minister Pullarao
Dec 01, 2014
GUNTUR: Agriculture minister Prattipati Pullarao has said that land records updation and correction in the villages identified for capital city will be completed within 10 days

Latest Realty News Of State

Realty Talk's