JM Financial Ltd's real estate fund is buying a residential project in its first investment in Pune. The deal involves JM Financial Property Fund--managed by Infinite India Investment Management--picking up a 100% stake in Windshield Developers Private Limited. The fund is picking up the stake for a commitment of Rs 27 to Rs 28 crore ($6 million) from city-based Marvel Promoters and Developers (Pune) Pvt Ltd, VCCircle has learned.
R K Narayan, Director at Infinite India, confirmed this development, when contacted by VCCircle. The residential project is still undergoing development and design and will comprise of of two-three-four bedroom flats and penthouses. The project is expected to have around 225-250 units, said Narayan. Though the current investment stands at around Rs 28 crore, "we might invest more depending upon the project," he said.
"Pune market is looking up and has done well in the recent times. Pune was always in the pipeline but there was an oversupply but now we think it’s stabilising," said Narayan. JM Financial's property fund has earlier invested in deals along with co-investors where they have acquired 100% stake.
Earlier this year, JM Financial acquired the stake of US-based SRS Investments in Infinite India Investment Management. The real estate investment company was set up as a joint venture in 2006. The firm manages real estate assets worth more than $500 million. JM Financial is also expected to raise a new $100-million fund next year, Vishal Kampani, Managing Director, JM Financial Group, told VCCircle earlier.
"Right now the focus is on the current portfolio and investing the remaining corpus," said Narayan. JM Financial Property Fund currently has approximately another $50 million to invest in future deals and has several transactions in the pipeline. "We plan to complete the
investment programme for this fund in the next six to nine months. We are seeing a much better quality of dealflow," he said.
Infinite has been an active investor in the Indian real estate even though one of its portfolio firms Maytas Properties, promoted by the family of the disgraced B Ramalinga Raju, founder of Satyam Computer, turned a risky asset. It currently has around 10 investments in its portfolio.
Besides Maytas, Infinite had invested in a host of projects across tier-I and tier-II cities, including $20-million infusion into Kolkata-based Srachi Developers and almost a similar tranche into Heera Group in Thiruvanathapuram. Some of its other investments were into a 32-acre mixed-use development in Mumbai, a 1.8 million IT park in Chennai, a large mixed-use space in Vishakapatnam and a few other entity level investments in real estate hospitality firms in Bangalore and Delhi.