India Infoline invests in real estate project
India Infoline (IIFL) has invested INR750 million ($13.9 million) in a real-estate development project in the state of Haryana through its IIFL Domestic Series 1 Fund.
The Faridabad project is spread across 100 acres and is being developed by Noida-based real estate firm Assotech.
According to Live Mint, which spoke to the fund's chief executive, Balaji Raghavan, the fund is also in the process of investing in two affordable housing projects in Bangalore.
IIFL is looking to invest the rest of the INR7 billion fund, its first real estate-focused vehicle which was raised last year, by April. It will be seeking out deals of INR300-500 million with small-scale developers. "The aim is to not invest in long-gestation projects, where approvals and sales go slow," said Raghavan.
IIFL primarily deals in structured transactions that involve both debt and equity. Investments include a slum redevelopment project in Mumbai by Sheth Creators in 2012, and more recently, the Spire World project in Gurgaon, which is being developed by Millennium Spire, and Ruparel Realty's suburban Mumbai project.
India has seen a proliferation of plotted projects where developers typically build the basic infrastructure before selling the land off as smaller plots. This has been particularly prevalent in northern India where more land is available.
In September, The Blackstone Group secured the biggest commercial real estate deal in India to date, acquiring a 50% stake in a portfolio of three business parks for $200 million. The portfolio, bought from Bangalore builder Embassy Property Developments, involved three commercial properties occupying more than 10 million square feet of space.
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