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Singapore-based property developer Ascendas has entered a joint venture to develop a $290 million project through its private property fund Ascendas India Development Trust(AIDT). AIDT has formed a 50:50 joint venture with IREO for an integrated project in Coimbatore.
The joint venture will be developing an integrated project on an area of 53 acres of land, comprising of an IT special economic zone (IT SEZ) and mixed-use development in Coimbatore. The development will be managed by Ascendas. The project will be executed in four phases and will be completed within six to seven years.
IREO is a foreign fund established to invest in real estate in India and has invested more than $500 million of equity and committed $2 billion of capital to date in a diversified portfolio of projects. It has experience in the acquisition and development of real estate in India. Ascendas, which has developed 265 acres of IT infrastructure in six cities in India, Coimbatore project will be its third venture.

The Reliance Industries group (Mukesh Ambani) is setting up a private equity fund with a corpus of $111 million (Rs 500 crore). It will invest in the retail and real estate sectors. The fund is likely to be called Skill, reports The Economic Times. It may be headed by Mukesh Ambani's close aide Anand Jain. The fund is likely to be open for investments by outside investors as well as RIL promoters and associates.

Sahad: Pantaloon is another retail business group which has floated two private equity funds - Kshitij and Horizon - to invest in retail and real estate projects. Pantaloon is also one of the investors in Indivision, a private equity fund that will invest across mid-market companies.

Go to article in The Economic Times.

Here is a story on a lesser know fund called Trikona Capital Group, which plans to invest in Indian real estate in a big way. The US-based fund, started by two India-born entrepreneurs, would plough in at least $1 billion through two funds launched in the US and UK, according to DNA.

Trikona, which has offices in New York and London, had recently raised

It's kind of a coup for Indiabulls Financial Services to strike a real estate partnership with DLF Group. They have formed a 50:50 joint venture called Kenneth Builders & Developers to develop residential and commercial properties across India. The JV has already bagged 35.8 acres of land from Delhi Development Authority (DDA) through a competitive bidding process for Rs 450 crore ($100 million). DDA had called for bids to develop residential projects under its public-private partnership project.

Indiabulls is an upstart in in the real estate business. In the last one year, it had acquired two mills in Mumbai through bidding for a total of Rs 700 crore ($155 million) or so. DLF group is India's largest and high quality real estate construction group. The JV gives Indiabulls one leg up. [Via The Economic Times]

Ravi Krishnan, India chief of sports and entertainment management company IMG, is moving out to head a $100 million real estate fund in India. Krishnan, who spent 11 years with IMG, has joined a real estate group, primarily based in Australia and Israel, to set up their India specific multi-million dollar fund. Krishnan will however will remain as an advisor with IMG.

"Krishnan will be joining a highly respected Australian/Israeli group of investors that is setting up an India-focused fund that will initially commit USD 100 million for investment in the real estate sector," said a statement. A lawyer by training, Ravi Krishnan was part of a four-member team that was sent in 1995 to set up IMG's operations in India. As the youngest member of the team, at 27, he began his new career by selling hospitality for the Cricket World Cup 1996.

Indian private equity fund lures Goldman veteran

Goldman Sachs managing director, Atul Kapur, is moving to Mumbai as chief investment office of Indivision. Indivision is the Pantaloon-backed private equity fund which forms part of Pantaloon’s strategy to build an all-encompassing business in the financial services arena in India called Future Group.

Goldman may invest $100m in Pantaloon arm

Goldman Sachs’ private equity arm is understood to be in talks to invest around $100 million as a strategic investor in Indivision Capital, a private equity fund managed by Future Capital Holdings, Pantaloon’s financial retail arm. Indivision, which will invest primarily in small and regional consumer-related companies as a strategic investor and scale it up to a national level, is currently undertaking roadshows abroad as part of its fund-raising strategy.

JP Morgan, IDF to buy 20% in L&T arm for Rs 500cr

Private equity investors JP Morgan and India Development Fund (IDF) are picking up a 20per cent stake in L&T Infrastructure Holdings for Rs 500 crore through a preferential allotment. While JP Morgan is investing Rs 300 crore, IDF will pump in Rs 200 crore. A formal announcement to this effect is expected shortly.

New Vernon and Bessemer Venture Picks Up 9.29% In Motilal Oswal for Rs 125 Crore

New Vernon and Bessemer Venture Partners have bought the stake at Rs 208 per share (face value of Rs 2) for Rs 125 crore, valuing the firm at about Rs 1,250 crore.

Capitaland To Invest $75 Million Pantaloon's Realty Fund

Capitaland, Singapore, South-east Asia’s largest property developer by market capitalisation will be investing $75m in Horizon Realty Fund, a retail property fund set up by Pantaloon Retail (India), now known as the Future Group.

Delhi-based Media Video Ltd, a value-for-money electronics manufacturer is turning a real estate company. The company, where Bennett Coleman & Company had picked up a stake a few months ago, is believed to be acquiring a real estate company in Himachal Pradesh for nearly Rs 20 crore ($4.5 million), reports Business Standard. The announcement of the acquisition is expected next week.

The real estate company is in the process of developing a prime residential land in Himachal Pradesh. The project is pegged at Rs 60 crore.

The bottomline is there are good opportunities in real estate outside the metros - in places like Himachal Pradesh, Kochi and Coimbatore.

India's largest real estate construction company DLG Group has been in news recently . They are going in for a mega IPO and (a private placement prior to that) very soon which is expected to raise anywhere between $1.5-2 billion. The privately-held company has built a track record of the highest quality builder in India with their landmark commercial buildings and housing colonies in Delhi and its southern suburb Gurgaon. Forbes has an article on the group here. Check it out.

Related:

DLF Universal In Rs 500-Crore Real Esate JV With UK's Laing O’Rourke

Real Estate Giant DLF Group Plans Mega IPO

Exclusive: DLF Group To Raise A Real Estate Fund With The Help Of Private Equity Giants

US pension fund California Public Employees’ Retirement System (CalPERS) is looking at investing in real estate in India and China. “Asia is going to be a major player in the long term,” CalPERS’ senior real estate investment officer Michael McCook told Reuters. “But we don’t go for speculative returns, we’re not swinging for home runs in international markets.” In India, which does meet CalPERS stock investment criteria, the fund will contribute around $100-400 million for building housing in New Delhi, Mumbai and Bangalore.

CalPERS wants about half of its property investment to be abroad within five years, against the present level of about one-tenth. At the same time, the money it devotes to property is set to rise to around 9-10% of the $183 billion fund by the end of this year from 6.8% now, according to CalPERS’ senior real estate investment officer Michael McCook. McCook said he expected an annual internal rates of return (IRR) after tax of around 15%. [Via The Financial Express]

India story is irresistible for former cricketer Steve Waugh too. Australian banking firm Macquarie Group and former Australian cricket captain Steve Waugh have formed a JV, Milestone Communities, to develop real estate projects in India. The JV is scouting for a partner to enter the Indian real estate market.

"Milestone's intention is to build theme townships, offering high quality, integrated residential communities built around the best sports, health and education facilities and providing a quality live-work-play ethos," said Steve Waugh, ambassador for Macquarie's Banking and Property Group.

Macquarie offers securities brokerage, equity research, equity capital market and corporate finance services in India. (Via The Times Of India)