Jones Lang LaSalle is planning to raise a new realty fund. The main focus of JLL’s Rs.1200 Cr realty fund will be commercial sector.
BANGALORE: Late last year Jones Lang LaSalle launched a private equity fund. The PE fund collected Rs.300 Cr. Now JLL is looking forward to raise another realty fund for investing in the commercial realty.
If JLL collected Rs.300 Cr for investing in the residential sector, the new fund, which is four times bigger than the first, will be invested in the commercial realty.
Rs.1200 Cr realty fund is expected to be launched by the 2013-end. Their first fund was invested in Bangalore. JLL invested the amount in two residential projects.
Though the new fund is expected to be invested in the commercial sector, details are not available. Sources with direct knowledge say that the decision is not yet taken as to whether the investment should be domestic or offshore.
While senior executives of JLL could not be contacted for comments, a person with direct knowledge commented that the investment will be in the commercial sector. He added that the real estate consultants are looking for higher returns from their investment and for this commercial realty is better now.
JLL is close to invest in the residential market of Bangalore out of their first fund. The global real estate consultants will invest in two residential projects. However their corpus investment is minimal and will be limited to Rs.30 Cr.
JLL also is studying the prospects of investment in the retail and hospitality sector. It means that the fund can be invested in any sub sectors of realty.
Though JLL made its entry in to the fund management arena of India last year, fund management is not new for the group. Globally LaSalle Investment Management deals with funds worth over Rs.2.50 lakh crore.
Apart from JLL, others like Knight Frank and CBRE are also planning to raise realty funds to have investment in the subcontinent. Most of them plans to invest in the commercial sector.