Jones Lang LaSalle Segregated Funds Group, the real estate private equity arm of consultancy firm JLL, has invested Rs 25 crore ($4 million) in a residential project of Chennai-based developer Vishwakarma Real Estates & Constructions (I) Pvt Ltd, the company said in a statement.
The investment has gone to a mid-luxury residential project Skypod, located off Pallavaram-Thoraipakkam Radial Ring Road in Chennai from the maiden fund - Residential Opportunities Fund –I (ROF – I) – of the firm.
Mridul Upreti, chief executive officer, JLL Segregated Funds Group, said, “The area is growing rapidly due to development of good infrastructure. We see value in investing in mid-market projects being developed by niche players.”
The developer is mostly present in and around southern suburbs of Chennai. Currently, it has three on-going projects totalling 1 million sq ft which are expected to be completed in three years.
C Shankar, managing director, Vishwakarma Real Estates & Constructions (I) Pvt Ltd, said the partnership will help the company strengthen its footprint in the region.
This is the third investment of JLL from its maiden fund which has a corpus of Rs 160 crore. Launched in 2012, the fund was originally targeting to raise Rs 300 crore but its size was cut down subsequently.
Taking this investment into account, it has so far deployed roughly Rs 70 crore from the corpus. Its last investment was also in Chennai where it invested Rs 20 crore in a residential project of Plaza Group.
Its debut deal was sealed in February last year when it invested Rs 24 crore in a residential project of Bangalore-based developer Assetz Property. The fund has exited the investment now.
On an average, it deploys capital worth Rs 25-30 crore per project.
Chennai has been one of the best performing realty markets in recent times even when overall real estate is seeing a slowdown. In fact, Southern real estate markets, led by Bangalore and Chennai, have outperformed its peers, as recent studies show.
Recent deals in the city include Landmark raising Rs 220 crore from NBFC arm of Edelweiss; ASK PIA investing Rs 110 crore in a Chennai project of Provident, the affordable housing arm of Puravankara; and VGN raising roughly Rs 600 crore from Piramal and Edelweiss.