Indiareit Fund sells $80 mln investments, plans more exits

MUMBAI Tue Dec 4, 2012 2:18pm IST

Related Topics

Stocks

   

MUMBAI (Reuters) - Indian real estate fund Indiareit Fund Advisors, a unit of drugmaker Piramal Enterprises(PIRA.NS), said it raised 4.4 billion rupees by selling three of its investments and expects to raise another $120 million through more exits in the near future.

The Indian property market has proven to be tough for global private equity funds, who were initially captivated by its growth potential, as developers promised double-digit returns but failed to deliver.

Many of the India-focused private equity funds are trying to exit investments made during 2006-07 as the life of the fund nears its end. They are also exploiting a recent rebound in investment sentiment towards the country.

Indiareit did not say who bought the three investments. The exits included a phased stake sale in a special economic zone and a residential project in Pune and another residential project in Mumbai's western suburbs, it said in a statement.

The fund has already returned about 9.05 billion rupees to investors from previous exits in earlier vintage funds and third-party mandates, Indiareit, which manages about 47 billion Indian rupees, said.

International private equity firms, mainly from the United States and Europe, have invested $13 billion in the Indian real estate sector since 2005 and are expected to exit from up to $5 billion worth of investments over the next couple of years, according to property consultancy Jones Lang LaSalle.

"The sentiment has changed. We are trying to do some more exits in the next couple of months," Khusru Jijina, managing partner of Indiareit Fund Advisors, told Reuters.

(Reporting by Indulal PM; Editing by Muralikumar Anantharaman)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Earnings Season

Earnings Season

HDFC Bank eyes pickup in corporate credit.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

Iron Ore Imports

Iron Ore Imports

JSW Steel to boost iron ore imports by up to 80 percent.  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Remembering Margerie

Remembering Margerie

Total’s "Big Moustache"- bon vivant, deal-maker and risk-taker .  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage