Indiareit completes property exits, targets new fund
Indiareit Fund Advisors, the real estate PE arm of Piramal Enterprises, has raised INR4.4 billion ($80 million) on exiting three of its investments and is now preparing to raise another offshore fund worth up to $350 million.
According LiveMint, the exits included a phased stake sale in a special economic zone, a residential project in Pune and another residential project in Mumbai's western suburbs.
In Pune, Indiareit sold a part of its 30% stake in a township project being developed by Paranjape Schemes to IDFC Private Equity for an undisclosed sum. It had invested INR2.4billion in 2007 for the stake. The residential project interests were sold back to their respective promoters.
The firm had invested a total of INR1.5 billion in these projects in 2008 and has so far realized INR1.1 billion. It expects to receive about INR1.9 billion more in the next quarter. The exits add to the INR9 billion the firm has already returned to investors.
"We have initiated discussions with our development counterparts in order to prioritize such exits with a view towards final realizations keeping in mind the various fund tenures," said Khushru Jijina, managing director of Piramel Reaty, who oversees operations at Indiareit.
The new fund will target investors in Europe, the US, the Middle East and Southeast Asia. "We are looking at a small fund size and don't want to invest for the sake of investing," said Jijina, adding that most investments from the fund were likely to be in the form of co-investments with developers.
It was previously reported that Indiareit would target $500 million for the fund. The firm has also halfway through fundraising for a INR5 billion vehicle that targets redevelopment projects in Mumbai.
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