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Morgan Stanley to invest $125m in Indian real estate project - sources

  • Susannah Birkwood
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Morgan Stanley’s global real estate fund is reportedly in negotiations with Mumbai’s Sheth Developers to invest $100 million to $125 million in a local residential project.

Sources cited by Reuters said that the vehicle will invest in the privately-held firm's project in the western suburbs of Mumbai.

Sheth Developers is said to have paid Borosil Glass Works around INR8.75 billion ($165 million) in 2010 for an 18-acre parcel of land in Andheri, where it plans to develop a large resident project.

If the deal goes ahead, it would be the Morgan Stanley fund's first investment in India in three years. The vehicle has injected around $750 million into the country's real estate since 2006.

News of the talks comes after Morgan Stanley appointed investment banking veteran Shirish Godbole as head of its Indian real estate investment arm last month. Godbole replaced Naresh Naik who left the firm to spin off his own investment fund.

Morgan Stanley has previously purchased stakes in property companies such as Oberoi Realty, based in Mumbai, which listed in 2010, and is reportedly among the suitors to purchase real estate in central Mumbai from domestic textile firm Alok Industries for $200 million, competing against the Government of Singapore Investment Corp. (GIC) among others.

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