Bangalore-based realestate developer Shriram Land Development India Ltd is raising $6 million from Madison India Real Estate Fund Limited for its recently launched residential project,according to  sources privy to the development.Madison India Real Estate Fund is managed by Madison Advisors Limited and its Indian advisor is Paracor Capital.

Shriram land has two ongoing projects which includes a 30 acre gated community in Sarjapur andanother 12 acre plot development at Meesaganahalli, both in Bangalore.According to the company’s website, it has plans to commence residentialprojects at Chennai, Bangalore and Hyderabad. It also has industrial plots inHyderabad.

Ramesh Dasari,vice-president-legal and company secretary, Shriram Land, said, “We aregoverned by confidentiality agreement with our stake holders and we cannotshare any information.” M Murali, the managing director of Shriram Properties,the real estate arm of diversified Shriram Group, has a personal stake inShriram Land.  A message sent to him wentunanswered.

A senior official at Paracor Capital Advisors, said, "the transaction is not yet completed."

Bangalore-based boutique advisory firm Sprout Capital Advisors is in the deal, a person with knowledge of the deal said. Sprout Capital declined to comment on thetransaction citing non disclosure agreement.

Madison India Real Estate Fund Limited is anIndia-focused real estate investment fund. It focuses on realty investments in Mumbai,Delhi NCR, Bangalore, Chennai and Hyderabad besides tier II citiessurrounding these larger metros. It pursues deals in hotels & hospitality,residential apartments and townships, commercial office space and retail mallsand shopping centers. It also looks at investment opportunities in segmentssuch as distribution centers, warehouses and special economic zones besides alliedareas like infrastructure.

Some of its other investments include Pune-basedMarvel Landmarks and Chennai-based Arun Excello Homes.

Paracor Capital itsIndian advisor also advises another Mauritius-basedfund Paracor India Investments Limited, which focuses on private equitytransactions. Paracor Investments typically invests growth capital of between $5-10 million and takes equity stakes of between 26 and 49 per cent. It focuses oninvestment opportunities in finance, logistics, food & beverage andconsumer facing companies.

For Shriram Land, thisis the second round of PE funding. In 2008, Shriram Land it had raised $12million from Samsara Capital to form its land bank in Mysore.

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