Real Estate focused private equity firm Amplus Capital Advisors has backed an upcoming residential project of Bangalore-based developer Jain Heights, the company said in a statement.
The firm has put in Rs 36.8 crore ($6 million) at special purpose vehicle (SPV) level for the upcoming residential project of the developer located in North Bangalore. The proceeds will be used by the developer to fund purchase of land.
Anuranjan Mohnot, chief executive officer, Amplus Realty Fund, Amplus Capital Advisors, said, “The fund believes that the end user-driven Bangalore residential real estate market should see high growth on the back of increasing urbanisation, changing demographics and an up-turn in the economy.”
Kishore Kumar, managing director, Jain Heights And Structures Pvt. Ltd, said, “We believe Yeshwantpur is the next growth corridor in Bangalore and this investment will enable us in increasing our footprint in the Bangalore realty market.”
This is the second investment by Amplus since January this year. In July, it invested Rs 70 crore in Shriram Properties for two premium residential projects in Bangalore. Amplus typically invests Rs 15-30 crore in smaller projects which have a development cycle of two-three years. It is currently managing its maiden fund with a corpus of Rs 150 crore and plans to exhaust the dry powder by the end of this year.
In a recent interaction with VCCircle, Anuranjan Mohnot said the firm has sealed three deals in Bangalore and is actively looking for opportunities in Chennai and Pune. Concurrently, the firm is fine-tuning plans for its first offshore fund and will hit the market for fundraise soon. It will invest close to 60 per cent of its upcoming $90 million (roughly Rs 550 crore) offshore fund in IT cities – Bangalore, Pune and Chennai
The maiden fund of the firm, Amplus Realty Fund - I, is co-promoted by Sanjay Lalbhai, chairman and managing director of Arvind Ltd, besides Jayesh Shah, director and CFO of Arvind Ltd and Rohit Choksi, director at GK Choksi & Co, a chartered accountancy firm.
Back in 2012, Amplus invested an undisclosed amount in Bangalore-based residential project of Assetz Homes Pvt Ltd.
Jain Heights, which is present across residential and commercial developments in Bangalore, had raised Rs 45 crore ($8.23 million) from Reliance Capital for its residential and commercial real estate projects in Bangalore last year. Through that, Milestone Capital which had put in Rs 20 crore in the company in August 2011 through its Milestone Domestic Scheme III, exited the firm.
Sprout Capital Advisors LLP acted as the financial advisor to Jain Heights on the deal.