Equis Funds Group invests $116M in Bangalore-based developer Assetz

Asia-focused investment firm Equis Funds Group has invested Rs 720 crore ($116 million) in Bangalore-based real estate developer Assetz Property to back infrastructure developments of mid-income housing projects of the realtor, according to a report published by The Times of India.

The proceeds from the fundraise will be used by the developer for building captive infrastructure for its large township projects aimed at mid-income group. It is planning to develop around 20 million sq ft under such projects.

"Our strategic alliance with Assetz will enable us to address some of the challenges of providing infrastructure for accommodating middle class housing for the urbanising population in the fast growing and rapidly transforming Indian environment," said David Russell, chief executive officer, Equis Funds Group.

In the last few months, affordable housing space has seen renewed activity on the back of the push by Modi government to provide housing for all by 2022. A bunch of players has announced foray into the space, chief among them is Shapoorji Pallonji & Company Ltd (SPCL) and Brick Eagle co-founder led Olympeo Infrastructure and Supertech in collaboration with HUDA.

Existing players in the space include Tata Value Homes, Mahindra Lifespaces and Value and Budget Housing Corporation.

While players developing projects aimed mid income group and lower income group have been looking to raise capital, deals in this space have been few and far between.

Recently, Assetz Property raised funding of Rs 50 crore for its project Marq from the real estate private equity arm of Motilal Oswal. Its other investors include Avenue Venture Partners, JLL Segregated Funds Group and Amplus Capital.

The developer has so far completed 3.2 million sq ft, leased 2.9 million sq ft and has a portfolio of 6.8 million sq ft under construction.

Equis Funds Group invests across infrastructure and energy space across Asia and provides growth and expansion capital to companies.

(Edited by Joby Puthuparampil Johnson)

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