Mumbai-based financial services company Centrum Capital has teamed up with the former head of property fund Indiareit, Ramesh Jogani, in his real estate private equity company, India Property Advisors (IPAL), which will soon launch its first offering — the Mumbai Residential Opportunity Fund, according to a story published by The Economic Times citing Jogani.
According to the report, the fund will have a size of Rs 250 crore and a green-shoe option of Rs 100 crore. It will seek to invest in bulk-buying apartments which is also a recent trend among many real estate focused funds in India.
His move comes almost one year after he told VCCircle that he is looking at a $300 million offshore realty fund to invest in India. The status of the proposed offshore fund could not be ascertained.
When contacted, Jogani communicated that he is not available for a comment as yet. In a separate interaction with VCCircle recently he had denied industry rumours of joining hands with Centrum Group for the proposed fund.
IPAL joins a string of realty investment firms which are chasing apartment bulk-buying deals. Recently, Piramal Fund Management raised Rs 500 crore ($82 million) in its Indiareit Apartment Fund which has a similar strategy and has an overall target of Rs 700 crore. Amit Goenka-led realty PE firm Nisus has also raised a maiden fund of Rs 400 crore which includes bulk-buying inventory from developers at a deep discount.
Centrum group had previously backed $100-million India Fund launched in a joint venture with Commonwealth Finance Corporation.
(Edited by Joby Puthuparampil Johnson)