VCCircle

When I recently asked a few real estate funds about the potential of a city like Agra for investments, the response was negative. Although it's the city of Taj Mahal, they said it's a dying city as far as industrial development is concerned, so the purchasing power is diminishing. Real estate fund Yatra Capital does not think so. The firm has invested 3.91 million euros (Rs 22.8 crore) for a 28 per cent holding in Gangetic Developers, a joint venture formed to develop a retail mall in Agra, an industrial city in Uttar Pradesh known for its leather and locks industry, besides of course, the Taj Mahal.
Probably, a retail mall may make more sense compared to a residential project. The city attracts thousands of tourists.
Yatra Capital has also invested in Alliance Hospitality Services, a Pune based developer of premium hotels and services apartments in Pune, Maharashtra. Yatra would invest 4.88 million euros (about Rs 28.5 crore) in the company for an equity holding of 20 per cent. All these investments will take Yatra's total investments in India to 80.5 million pounds (around Rs 470.9 crore). The firm had raised 100 million euros (Rs 585 crore) in December 2006. (See Business Standard for details.)
In a related development, Delhi-based Jacob Ballas Capital India and JM Financial Equity Fund are reportedly in talks with Indore-based 3-star hotel and restaurant chain — Sayaji Hotels. The funds want to pick up around 10 per cent stake in the publicly-listed company, according to The Economic Times. The deal is expected to be finalised by the month-end.
Sayaji Hotels managing director Sajid Dhanani has confirmed that the company is raising funds by issuing fresh equity, and is in talks with funds. Sayaji Hotels shares are trading around Rs 64. The promoters hold 48.4 per cent stake in the firm, while Clearwater Partners holds around 14 per cent, UK'S Acacia Capital Partners own 3 per cent, and the remaining are with the public. The company plans to expand its restaurant chain — Barbeque Nation, and also has plans to set up four sytar hotels in other cities like Pune. The company plans to set up 100 such outlets by 2010 from the existing five. It is also considering taking the franchise route to set up restaurants abroad.