Tag Archives: PERE Investment

Valmark Group mulls over Rs.125 Cr realty fund

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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.
Valmark Group plans to raise Rs.125 Cr for investing in real estate.

Valmark Group plans to raise Rs.125 Cr for investing in real estate.

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. Continue reading →

Essel Group to Raise Rs.1000 Cr PERE Fund

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Private Equity wing of Essel Financial Services Ltd plans to launch its first real estate fund. The Rs.1000 Cr PERE fund will be invested in the residential sector.
Essel plans to raise Rs.1000 Cr for investing in residential sector.

Essel plans to raise Rs.1000 Cr for investing in residential sector.

MUMBAI: Private Equity wing of Essel Financial Services Ltd has already raised Rs.200 Cr. The fund will be invested in the real estate sector. Essel Group plans to develop housing projects in top cities across the subcontinent.

Private equity in real estate (PERE) is increasing in India. 2012 saw 32 PERE investment deals. Nearly PERE Funds worth $464.26 million was invested in last year. This is well above $310.88 million in 2011 which saw only 15 such deals.

The PE wing of Subhash Chandra-owned Essel Group plans to launch a Rs.500 Cr fund. The group also has plans to raise another fund of the same amount. The fund will be raised from domestic investors.

Essel Financial Services CEO and MD of Amit Goenka said that developers raise huge demand for capital. He added that most of the projects are stuck, due to the lack of capital. He finds delay in approvals as another reason for the stuck projects. Continue reading →

Bangalore and Mumbai bag majority of PERE funds

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Private Equity in Real Estate (PERE) is more in Bangalore and Mumbai. Other cities like Chennai and Pune are also favorites for the private equity investors.
The IT projects in Bangalore more popular for PERE investors.

The IT projects in Bangalore more popular for PERE investors.

South and West remain favorites for private equity real estate investors. Majority of the Private Equity in Real Estate (PERE) investment is done in the south and west cities of India; especially in Bangalore and Mumbai.

Last year Bangalore, Chennai, Mumbai and Pune together received Rs.27,907 Cr of PERE investment. This amounts to 84% of the total investment.

The reports say that the Delhi-NCR received the third highest PERE Investment. But experts refute this by pointing out that though Jwala Real Estate and Indiabulls Infratech are Delhi registered companies, their projects are in Mumbai. It means that the investment in the National Capital Region remains only on the paper.

Blackstone is the largest PE investor in India. The US-based PE major alone has invested over $600 million in the Indian realty. However the group has so far invested only in the south and west India. Bangalore holds majority of their investments. The group has also invested in Pune and some southern and eastern cities. Continue reading →