Pune-based realtor Rohan Builders has raised Rs 55 crore ($8.9 million) from Avenue Venture Real Estate Fund (AVREF), for development of a residential project in East Bangalore. AVREF, a Mumbai-based domestic real estate fund, has taken equity stake in the project.
The capital has come in the land acquisition stage and the land parcel is valued at close to Rs 85 crore. The developer has raised private equity capital for the first time for development of its project.
The size of the project is approximately 7 lakh sq ft of saleable area and is located in Boganahalli, one of the fast developing corridors of Bangalore. Boganahalli, situated along the Marathahalli-Sarjapur stretch in East Bangalore, is strategically located in the midst of the IT corridor on Outer Ring Road.
Rohan Builders has five ongoing residential developments in Pune and four in Bangalore. It also develops industrial and infrastructure projects.
Suhas Lunkad, CMD, Rohan Builders, said, “Along with our expansion plans in Pune, this acquisition gives us a welcome opportunity to expand our existing footprint in Bangalore. These two cities represent the highest potential for developers catering to residential demand from India's thriving IT sector."
The Pune division of Jones Lang LaSalle India was the transaction advisor for the deal.
Anuj Puri, chairman & country head, Jones Lang LaSalle India, said, "This deal once again proves that, even in times of curtailed liquidity for real estate, capital is available for quality projects by established and credible developers."
AVREF, which primarily invests in residential projects in Pune, Bangalore and Chennai, is run by Jagannath Shetty and Akshay Dewani who have set up the fund with a corpus of Rs 350 crore. The fund has an over-allotment option of close to Rs 100 crore.
The fund’s backers include promoters of an unnamed pharma company. Earlier this year, the fund invested close to Rs 40-50 crore in Bangalore in projects of Assetz Homes Pvt Ltd. It recently invested Rs 25 crore in Chennai-based Casa Grande’s project and the fund will increase its investments up to Rs 55 crore.
(Edited by Joby Puthuparampil Johnson)