Valmark Group is mulling over raising a private equity in real estate fund. Rs.125 Cr PERE fund of Valmark Group will be focused on Bangalore realty.
BANGALORE: Valmark Group, a Bangalore-based real estate firm, is mulling over raising a fund worth Rs.125 Cr. The main focus of the fund will be Bangalore realty.
Valmark Infra and Realty Trust plans to invest in the residential market of South Bangalore. The group expects a minimum return of 15%. The fund will be invested for developing six to seven projects in Bangalore.
The investment will be for three to five years. The investment manager for the fund Jaswant Munoth said that Valmark Group expects a return of up to 36%.
Mr. Munoth added that the investment will be extended to two more years in case if there is no chance for an easy exit after five years.
Speaking about the investment plan, Valmark Group managing director Ratan Lath said that the average size of investment will be Rs.25 Cr to Rs.30 Cr.
The group has over 1.8 million sq. ft. of projects under construction. All their projects are in Bangalore residential market.
Recently they have signed contracts with some of the top developers of the country. Brigade Group, Embassy Developers, K Raheja Group, Nitesh Estates and Unitech Developers are some of them.
Valmark Group has already invested Rs.25 Cr in ‘The Greens,’ an upcoming residential project by Indya Estate.
Mr. Munoth said that the group is in talks with many other developers for investment. He added that the entire fund will be invested within a nine months’ time. The group has a land bank of over 500 acres. With the fund, the group will develop mainly residential and integrated township projects.
However the group also has plans to develop commercial projects, office spaces and hotels. Though their main concentration is Bangalore, they have plans to develop projects in other cities like Mysore.