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Yatra to put $1 bn in realty

Saffron Asset Advisors, which manages investments of NYSE Euronext-listed real estate investment firm Yatra Capital, is planning to invest over $ 1 billion in India, reports Indulal PM.

india Updated: Sep 05, 2007 01:04 IST
Indulal PM

Saffron Asset Advisors, which manages investments of NYSE Euronext-listed real estate investment firm Yatra Capital, is planning to invest over $ 1 billion in India over the next 12 months.

"We are going to raise $200 million soon. We will be raising another $200 million for the hospitality sector and a $200 million more for the warehousing and storage sector. In 12 months we will be investing over $1 billion in various real estate projects,” said Saffron Asset Management MD Ajoy Veer Kapoor.

The company is also planning to raise a domestic fund of Rs 300 crore.

In December, 2006, the company raised $100 million by listing the company on the NYSE Euronext. The entire fund has been invested in six months.

Private equity firms have so far committed close to $3 billion investments in Indian real estate sector this year despite a pressure in property prices due to increased loan rates.

During the first half of 2007, real estate and infrastructure development sector accounted for about one-third of all private equity funding that has come to India.

Some of the big deals in the real estate sector this year include Avenue Capital's 26% stake in SKIL Infrastructure for $500 million, DE Shaw's $400 million investment in DLF Assets, IL&FS' $100 million in QVC Realty, Morgan Stanley Real Estate's $150 million in Oberoi Constructions, Singapore-based GIC, George Soros and Morgan Stanley joint investment of $166 million in Anant Raj Industries and TPG-Axon Capital's $100 million investment in DivyaSree Developers.

"We are bullish on Indian infrastructure. There would be correction and it should happen. But there is a huge investment oportunity in the real estate front in the country," Kapoor said.

So far, Yatra has invested 21.6 million euros to pick 49 per cent holding in Kolte Patil Developers. The joint venture will initially develop three residential projects, within the key corridors of growth in Pune and located next to the commercial and technology related developments.

The company will be investing another 22.37 million euros for three projects including a 50 per cent stake in retail mall in Nashik, 30 per cent stake in a mixed-use development in Indore and another 35 per cent stake in a residential township in Indore.

The company also has a strategic shareholding in Phoenix Mills and 24 per cent holding in a joint venture to develop a retail mall "Market City", in Pune.