International developer and investor Tishman Speyer is setting up up a $1 billion realty fund for India. Tishman has already started talking to investors for our next fund and plans to raise the fund in the next 8-10 months, according to this report.
In July this year ICICI Ventures had fully exited TSI Venture India Pvt Ltd, a real estate investment joint venture between itself and Tishman Speyer. The joint venture was called TSI Ventures Ltd. ICICI Ventures is now raising $1.5 billion real estate fund. Though its has exited the JV by selling its 50% stake to Tishman, ICICI Ventures still holds a equity stake in some of the projects.
TSI Ventures was a $700 million fund in which both ICICI and Tishman contributed $350 million each. TSI Ventures along with Nagarjuna Construction Co. is developing one of India’s largest integrated township on a 400-acre site in Tellapur, Hyderabad. The expected investment in this project is $2 billion. TSI Ventures is working on projects in cities like Mumbai, Delhi, Bangalore, Hyderabad, Pune and Chennai.
Last year it also announced 18-storeyed project named WaveRock in Hyderabad. It was to be built in three phases, and in accordance with the requirements of LEED (Leadership in Energy and Environmental Design) rated building. Tishman Speyer has owns famous buildings across the world which include Rockfeller Centre and Chrysler Building (New York), Sony Centre (Berlin) and MesseTurm (Frankfurt).
Quite a few overseas real estate companies have started operations in India through a joint venture with some of the local firms. These ventures help them navigate the domestic markets and establish a presence. Recently New York-based Vornado Realty Trust partnered with RIL to launch $500 million fund to acquire, develop and operate retail shopping centers across key cities in India. Apollo’s real estate division also runs a real estate fund, the $630 million Sun-Apollo Ventures, which it runs with Delhi-based Sun group. Trikona Capital also has a $100 million fund with IL&FS.