Fire Capital Fund Mauritius Pvt Ltd, a private equity fund focused on the Indian housing market and real estate development, has set up a 50:50 joint venture with real estate developer Omshakthy Agencies (Madras) Pvt Ltd to build residential projects and townships in and around Chennai, the company has said in a statement on Thursday. The new joint venture called Omshakthy Fire Realty will evolve into a Rs 700 crore SPV within the next three years, according to the company statement.
“With Omshakthy as our partner, we are confident to build bankable and profitable realty projects and we look forward to a long-term relationship,” Om Chaudhry, founder and CEO of Fire Capital Fund commented on the joint venture.
Incorporated in 1991, Chennai-based Om Shakthy Agencies focuses on residential development, as well as land bank aggregation for industrial projects and residential townships. The company provides land aggregation services to government agencies and multinational companies while its construction projects include factories, bridges, residential apartments, schools, hotels, cineplexes and retail real estate development.
The company has a land bank of around 340 acres distributed across various locations. Post-acquisition, the value of these land pieces has gone up significantly and the company is in the process to leverage the same.
Incorporated in 2004, Fire Capital Fund focuses on metro suburbs and tier 2 cities to set up large-scale projects in these satellite urban villages. Currently, it has four projects in its kitty – a 700 acre development in Jaipur, a 230 acre project in Bangalore, a 152 acre venture in Nagpur and a 139 acre project in Indore.
Recently, Fire Capital has also tied up with a clutch of US-based realty firms to form a new company that plans to invest Rs 6,000 crore over the next four years to develop 32,000 residential houses across the country. The new venture called Astrum Homes is an FDI-funded real estate development company, set up to develop projects in tier II and tier III cities and it mostly targets middle and upper-middle income segments.