» Corporates float funds to acquire assets in property market
Date: Sep 27, 2008
Author: Economics Times
MUMBAI/BANGALORE: Expecting a huge value erosion in the realty space, corporates have started to float new funds to acquire assets in the domestic property market.
Corporates such as the Aditya Birla group, GMR Infrastructure, Akruti City, Bangalore-based Nitesh group and Saffron Advisors have either floated or are in the process of floating funds with corpus ranging between Rs 500 crore and Rs 1,000 crore.
“As far as Indian realty is concerned, for the right projects, funds are still available,” said Saffron Advisors MD Ajoy Kapoor. “Conservative European investors, after conducting extensive due diligence and research, are more comfortable with investing in Indian real estate provided they are able to align with the right partners,” he added.
Munich-based retail aggregator Deutsche Capital Management AG (DCM) has underwritten $20 million for Saffron India Real Estate Fund I (SIREF I), an India-focused real estate fund floated by Saffron Advisors. DCM is raising a specific fund for investing into Indian real estate through Saffron Advisors.
SIREF I is currently raising funds in the US, the UK, Europe, the Middle East and the Asia Pacific. It is a $350- $400 million real estate fund with a maximum limit of $500 million.
