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Red Fort Capital to invest $675 Mn in real estate
By siliconindia
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Wednesday, 30 January 2008, 02:55 IST
New Delhi: India focused private equity (PE) firm Red Fort Capital will invest around $ 675 million (Rs 2700 crore) in real estate sector by 2009. The investment includes acquisition of 2,500 acres of land in over 20 cities across the country.
"By 2009 we will have invested about Rs 2,700 crore in development projects in Indian real estate. Of which, about 70 percent will go toward acquiring 2,000 to 2,500 acres of land in suburbs of metros and Tier II cities," Parry Singh, MD, Red Fort India Real Estate Fund.
"The respective developers will also invest their share of the remaining equity amount on a project-by-project basis," he added.
The company will also develop properties worth Rs 12,000 crore, and has already acquired over 1,000 acres of land in different parts of the country.
"We are actively looking at 21 cities, with a strong interest in Mumbai, Pune, Chennai, Hyderabad, Bangalore, Kolkata and Vishakhapatnam markets," he said.
Having committed a significant portion of the first fund of $425 million, Red Fort is now in the process of utilizing the recently launched Rs 1,000 crore domestic funds.
"About Rs 800 crore of the domestic fund will be put in land acquisition," he added.
The company is in the process of acquiring about 200 acres of "comparatively cheap" land in the outskirts of Mumbai and will develop residential, commercial, hotels, hospitals and retail spaces in these lands.
"The recent controversies have made us further gun-shy of developing Special Economic Zones," Singh said.