Do More With Reuters
Partner Services

Protego brings $400m Indian office fund to market

Thu Oct 25, 2007 7:30pm IST
 
Email | Print | | Single Page
[-] Text [+]

LONDON (Reuters) - British investment management group Protego Real Estate Investors LLP said on Thursday it hoped to raise up to $400 million of equity to launch a speculative Indian office development fund.

The Protego WIRE Indian Office Development Fund has been designed in joint venture with WIRE Commercial Partners, a unit of Singaporean property services company WIRE Group.

The closed-ended, seven-year fund will invest primarily in office development projects in tier one and tier two cities in India.

It said it hoped to raise $150 million of seed equity by the end of the fund's first closing in February. Protego is targeting net returns in the region of 25 percent.

The company also hopes to launch an Indian office investment fund by June 2009 to complement the development venture.This fund will have the option to acquire the completed developments at the market valuation and acquire other assets as appropriate.

"From a real estate perspective there is huge primary demand from international corporates for quality office space - driven primarily by the cost benefits from outsourcing global IT," said Charles Weeks, head of business development at Protego.

It is estimated that demand for Indian office space will increase by between 30 percent and 35 percent per annum compounded "for the foreseeable future", Protego said.

"One of the issues with investing in real estate in India is building a pipeline of deals that combine a high probability of closing while fulfilling the various criteria required by international investors," said Iqbal Jumabhoy, chief executive officer of WIRE Group.

"WIRE has built a solid pipeline of projects and has identified a list of potential tenants to fill these projects," he said.

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

People stroll outside the Taj Mahal hotel ahead of the first anniversary of the militant attacks in Mumbai, November 24, 2009.  REUTERS/Punit Paranjpe
Investors worry about another attack

The risk of militants striking again worries investors who fear that a second attack similar to last year's Mumbai raids could shake the economy.  Full Article | Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

road to Copenhagen

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

SHOWCASE

Capital Raising
Capital Raising

Analysis - China banks' rush for billions could trip markets.  Full Article 

 
Photo
Bonus Payout

"Bonus" has become a dirty word on Wall Street.  Full Article 

 
Bubble trouble?
Bubble trouble?

With the BSE Sensex at around 17,000 points, are the Indian equity markets looking at a possible bubble?   Commentary 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Recovery Path
Recovery Path

Indian techie logging out of downturn gloom.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
Risky Proposal
Risky Proposal

Rupert Murdoch courts trouble if he blocks Google on news.  Full Article