Tishman, ICICI to invest $1 bn
Tishman Speyer and ICICI Ventures will invest more than $1 billion over the next three to five years in India.business Updated: Jan 10, 2006 15:34 IST
US-based real estate developer and investor Tishman Speyer and India's ICICI Ventures will invest more than $1 billion over the next three to five years in India, their joint venture said on Wednesday.
The fund marks the biggest commitment to real estate in Asia's third-largest economy after India last year allowed 100 percent foreign direct investment in townships and housing projects.
Tishman, which owns the New York Times Building and Rockefeller Center, has teamed up with the private equity arm of ICICI Bank, India's most valuable bank, in TSI Ventures (India) Pvt Ltd to build commercial, residential and mixed-use properties across India.
"The funds have been almost tied up," Prakash Gurbaxani, TSI Ventures' chief executive, said adding that the investment includes a combination of debt and equity.
Tishman's statement comes a day after New York-based private equity firm Siachen Capital LLC unveiled plans to invest $100 million in Bangalore-based real estate firm Nitesh Estates Pvt Ltd.
India's $17-billion software and office service industry is fuelling demand for homes and business parks, amid the country's overall economic momentum.
Last year, a leading Asian property developer, Singapore's Ascendas Ptv Ltd, launched a Rs 10 billion ($223 million) Indian technology parks fund, with an aim to eventually double its size.
The group's Ascendas Real Estate Investment Trust is Singapore's second-biggest listed property trust.