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Chennai-based real estate developer Pelican Group has raised Rs 20 crore in private equity funding from Milestone Capital Advisors Ltd to fund its aggressive expansion plans in the affordable housing market. Pelican has several developments coming up in cities like Pondicherry, Madurai, Trichy and Kodaikanal.

The investment by Milestone Capital comes at the special purpose vehicle level called Pelican Affordable Housing Pvt Ltd, which has two or three projects under development.

The company's project at Pondicherry, Pelican Belfort, has witnessed interest from buyers from cities like Neyveli, Cuddalore and Kalpakkam. The projects also give infrastructure facilities like

sewage treatment plant, water treatment plant, underground provisions for power and water supply and sewage disposal.

Trans Corporate Advisory acted as the exclusive financial advisor to Pelican.

Pelican focuses on tier 2 and tier 3 locations for plotted development & affordable housing projects with current developments in Pondicherry, Madurai, Trichy & Kodaikanal to the tune of 40 lakh sq ft.

“Affordable housing is still at a nascent stage in India. It holds great potential to redefine the contours of Indian real estate. Affordable housing is expected to account for 80% of the total housing demand over the next 4-5 years," said Ashish Joshi, Managing Partner - Real Estate Investments, Milestone Capital Advisors.

Private equity investments in the Indian real estate have witnessed a quarter on quarter bump this calendar year as sentiments improve. Till now, there have been 23 deals worth $719 million in this calendar year, according to VCCEdge. While quarter ending March saw deals worth $174 million, the quarter ending June saw deal worth $219 million.

The current quarter, which still has 18 more days to go, has seen deals worth $326 million due to large deals like TPG Capital's $100-million infusion in Shriram Properties and Lodha Group's $107 million fund raise for world’s tallest residential tower in Mumbai from HDFC Venture Funds.

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