DHFL Venture Capital Pvt. Ltd has tied up with Redwood Group to raise a private equity fund focused on logistics and warehousing. DHFL Venture Capital, which is registered with SEBI, is the subsidiary of India’s third largest home finance company Dewan Housing Finance Corp. Ltd.
The two firms have entered into a 50:50 JV which will raise funds from both domestic and overseas markets. While the fund will raise $150-200 million from the international markets, it will also raise another Rs 150-Rs 200 crore from the domestic markets, reports Business Standard.
Redwood has offices across Asia and Europe and was founded in 2006 with investments of $10 billion. Several Indian private equity real estate firms have entered into joint ventures with overseas players to raise India-focused funds. While the overseas partner can bring in the fund raising muscle, the Indian players can give the local expertise and connections to the fund manager.
Another JV logistics fund is Indospace Logistic Partners, which is being raised by Future Capital Holdings and Realterm Global, an American industrial real estate investment firm. Apollo's real estate division also runs a real estate fund, the $630 million Sun-Apollo Ventures, with Delhi-based Sun group. Last year New York-based Vornado Realty Trust partnered with Mukesh Ambani-led RIL to launch $500 million fund to acquire, develop and operate retail shopping centers across key cities in India.