US realtor Hines to invest $250M in Indian residential properties

US-based privately held real estate company Hines said on Monday it plans to invest $250 million (Rs 1,500 crore) in residential real estate in India.

The firm will partner local developers to channel its investment. The capital will be put across residential properties in the form of equity. It will chase investments in urban centres that include Delhi National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Bengaluru and Pune.

Yash Gupta, country head and senior managing director, Hines India Limited, said, “The early-stage availability and flexible duration of our equity commitments will reduce our projects' exposure to the market cyclicality that has plagued Indian residential development. Our approach should unlock and maximize land value.”

With this venture, Hines expands its exposure to India. Across the globe, it has developed 58,000 residential units (2.2 million square meters) in nine countries.

In India, it has been present since 2006 in commercial space through two developments. It is developing a 1 million sq ft commercial asset in Gurgaon in collaboration with DLF Ltd and a commercial asset called Skyview Corporate Park on a 21 acre land parcel in collaboration with Shyam Telecom.

Hines, currently, manages 391 properties totalling 161 million sq ft, which includes 89.1 million sq ft for third parties.

On the back of positive sentiments post the formation of Modi-government at the centre, last couple of months have seen global realty firms increasing their exposure to Indian real estate market. Recently, real estate tycoon Donald Trump in his visit to India said that he will be looking at deals involving capital infusion apart from brand licensing pacts.

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