Tuesday, January 4, 2011

Fiis Funds To Pump Rs 30k Cr Into Indian Real Estate

Foreign institutional investors FIIs and real estate funds are bullish about India’s fast growing real estate sector. They propose to bring in fresh investments to the tune of Rs 30000 crore in the residential property market in TierII cities by the end of 2008.

FIIs have already invested close to Rs 10000 crore in the Indian real estate sector in the last two years.

JP Morgan Morgan Stanley Real Estate Fund Warburg Pincus Merrill Lynch and Lehman Brothers are exploring the option of investing over Rs 1000 crore each in the sector.

Real estate funds such as AIG Real Estate Triconal Xander and Saffron are also ready with their plans to invest between Rs 500 crore and Rs 1000 crore each in the sector through the joint venture route for which they are currently in the process of identifying the right partner.

Some of the major TierII cities in India include Bhopal Indore Raipur Nagpur Madurai Tiruchirapalli Coimbatore Burdwan Asansol Bhubaneswar and Ranchi.

According to leading international property consultants there is a huge dearth of quality housing in TierII cities. Hence the fresh investments are aimed at providing quality housing.

Sources recalled that HDFC India Real Estate Fund recently bought 10 in Punebased Vascon Engineers for Rs 140 crore.

In Chennai Sun Apollo has entered into a joint venture with Sriram Projects for 200 mn. Deutsche Bank has also bought 30 in Chennaibased Marg Constructions.

According to Stan Erwin senior managing directordevelopment investment division TrammelCrow and Company “We are now finalising plans to set up our real estate company called TrammellCrow Real Estate Company in India with the aim to develop residential commercial and retail properties in TierII cities at an initial investment of about Rs 1000 crore from the beginning of 2007.

A bit old article but what i would like to know is , was there any such investment in Trichy.

No comments:

Post a Comment