Chennai-based small public listed realtor Rajeswari Infrastructure Ltd is looking to raise $5 million (Rs 31 crore) through foreign direct investment (FDI) route for its upcoming project in Chennai Trillium, the company said on Friday.
It is looking to become one of the first set of realtors to take advantage of the recent relaxation in FDI norms in the sector which allows foreign investment in smaller projects.
Recently, the union cabinet approved the proposal to bring down the size of FDI compliant realty projects to 20,000 sq m from 50,000 sq m and accordingly, minimum capital requirement for a realty project to attract FDI was halved to $5 million.
Rajeshwari Infra's project called Trillium is being developed as a fully residential development on 3.72 acres in Rathinamangalam, Chennai. The proposed development has a built up area of 325,000 sq ft (over 30,000 sq m) which will throw up 292 units.
An email sent to the company's managing director G Ramamurthy seeking his comment on the report did not elicit any response till the time of filing this report.
According to experts, easing of FDI norms in construction will boost realty investments in smaller cities and give PE investors the option of diversifying their portfolio.
Real estate markets of south have done better than NCR and MMR in the last few quarters on sales volume front. As a result, the flow of private equity money has also increased to the markets of Bangalore and Chennai over the last few quarters.
Established in 1993, Rajeswari started as publishing house and later ventured into construction. It is engaged in the construction of independent houses, apartments and bungalows across Chennai.
(Edited by Joby Puthuparampil Johnson)