Red Fort Capital, a private equity real estate fund, has invested close to Rs 150 crore ($30 million) in a residential project of North-based realtor 3C Company. The present investment has come in for an upmarket residential project, spread across 47.5 acres in Gurgaon.
Kuldip Chawla, Principal at Red Fort Capital, confirmed that the transaction had taken place.
This is the fifth time that the fund has invested in the Gurgaon-based developer. In February last year, the fund invested in the company’s residential project in Noida and acquired 50 per cent stake. With the current transaction in place, it is estimated that Red Fort has put in close to Rs 500 crore in 3C. The company has already delivered over 13 million sq. ft. of niche developments till date.
Analysts tracking the sector say that deal sizes have come down, compared to the past, and developers are now raising debts at the initial stage of land aggregation or for construction finance.
Red Fort Capital has struck maximum deals in the residential space in the Northern Central Region. It has recently invested close to Rs 250 crore in Mumbai-based developer Omkar Realty’s residential project.
According to VCCEdge, the financial research platform of VCCircle, $69.87 million has been invested in the residential realty space by realty fund managers since the beginning of the year.
Red Fort Capital has recently raised around $500 million from overseas investors for its second India-focused fund, one of the biggest mop-ups since the global meltdown of 2008. With the new fund, it will have nearly $900 million under management, making it one of the largest independent private equity real estate investment specialists in India.