Indiareit Fund Advisors, a private equity real estate fund manager, is investing Rs 200 crore in the premium residential project being developed by Mumbai-based Omkar Realtors & Developer. The investment, done through Indiareit’s Rs 930 crore Domestic Fund IV, is for a stake in the residential project at a prime location in Worli, with a development potential of over a million sq. feet.

In spite of the overall sentiment of the market being low, Omkar has launched four projects in Mumbai in the last six months. Incorporated in 2005, the company is in infrastructure and real estate development and aims to develop projects spanning 20 million sq. ft. or so in the Mumbai Metropolitan Region (MMR). The company essentially focuses on development projects across the island city and its sub-urban districts over a five-year horizon.

Private equity investments in the real estate sector stood at $831 million across 22 transactions as of August 31 this calendar year, according to VCCedge, the financial research platform of VCCircle. And the deal value during the 2010 calendar year stood at $1.35 billion across 43 transactions.

“Omkar believes in building better lifestyles, as well as providing asset value appreciation for their customers and investors. Our pipeline of projects and our professionalism have helped us build credibility in the market. We are happy to be associated with a reputed PE Fund like Indiareit. We envision extensive expansion plans within Mumbai and plan to develop many such exclusive residences,” said Babulal Varma, MD of Omkar Realtors and Developers.

“We are excited at the opportunity to forge a partnership with Omkar for this project and this investment is a validation of our belief in the developer and his capabilities, as also in the location,” said Ramesh Jogani, CEO and MD of Indiareit.

Indiareit, promoted by the Ajay Piramal Group, is set to be acquired by the listed flagship firm Piramal Healthcare for a total deal value of Rs 225 crore or $50.3 million. It currently manages a corpus of nearly $900 million, spread across four funds (three domestic funds and one offshore fund), besides the AIM-listed Trinity Capital Plc.

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