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Real Estate Roundup: Rutley Capital, Red Fort Capital, Tanmiyat Group, Accor
Tue, 11/27/2007 - 18:06 — Sahad P VRutley Capital Partners: The British real estate private equity firm plans to raise $300 million of equity for an Indian residential investment fund. The ultimate target size of the fund is $1 billion, reports Reuters.
The seven-year fund will invest in residential and mixed-use development schemes in Indian cities, including Chennai, Bangalore and Pune. It's expecting a net internal rate of return in excess of 20 percent to shareholders.
Rutley will tie up with global property services firm Knight Frank for advisory services.
Red Fort Capital: The India focused real estate fund plans to invest Rs 800 crore ($200 million) over the next six months in developing low-cost housing projects in India, says a report in Mint. It will look at developing such projects in the peripheries of metros such as New Delhi, Mumbai, Chennai and Bangalore. Red Fort Capital director Subhash Bedi has been quoted as saying that they will partner with a developer and will use pre-fabrication material to reduce the cost of construction. The company plans to invest in houses that cost under Rs 10 lakh. The houses will range from 300 sq. ft to 850 sq. ft in size.
Tanmiyat Group: Saudi Arabia's leading investment and real estate developer is planning an investment of around $3 billion in a township project in India, reports PTI (via Business Standard). The group has zeroed in on Bangalore for its first ever project in the Indian market. The group was still fine-tuning various aspects of the project, including the investment structure for it .This would be a mixed-use project and would be completed in phases over a five-year time span. The equity component is still fluid and the real estate developer is yet to decide whether they want to load a debt component onto the project. The average size of the group's projects has been in the range of $2.5-3 billion.
Accor Hospitality: The firm plans to set up 40 hotels in the country with an investment of euro 150 million in the next three years, reports PTI (Via Business Standard). The group plans to have its hotels in Mumbai, Delhi, Hyderabad, Pune and would also stress on mini metros. Presently, the group has only one hotel at Hyderabad. The group would come up with two hotels in Mumbai by the end of 2008. They are exploring other Tier I and Tier II cities also for our expansion plans.
Comments
Why so much of real estate activity happening in such a short time frame of past 3 years?
The population of the world has not grown by so much percentage as against the activity in construction.
Today, everybody wants to put in their in real estate. Residencial or commercial anything will do...! Quality
Come 2010 May-June, the currently planned projects at completion/completed stage.
Demand will not be as high above supply as it is today. This is not a concern, if it happens only in one city such as New Delhi, or only in Paris. However, the matter is grave, if this happens everywhere from Amssterdam to Bangkok, New York to Sydney, Mumbai to Dubai ... all over. Look at the schedules of completion for the today's most prestigious projects, whether residencial or commercial. If there is a ripple effect of over supply, it can be adverse.
The world has witnessed a few market downturns. Less than 10 years back, it was bubble burst in IT.com. And that affected even the people who never even had used IT. While highly information rich analysts can see no bubble this time, it is always a good idea to be little cautious. Hardly anybody had foreseen dot-com bubble bursting danger back then as well....
WISH TO KNOW MORE ABOUT TANMIYAT GROUP & SPECIFICALLY ABOUT THEIR ACTIVITIES IN INDIA.
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