Tata Realty and Infrastructure (TRIL), the commercial property and infrastructure development arm of Tata Sons, has launched a Rs 600-crore domestic real estate fund with Tata Asset Management.
The fund is to invest in income generating assets such as malls, office complexes among others. TRIL is expected to close the fund raising in the next three months.
The company’s first fund, an offshore one called TRIF-1, was mostly for development of projects. Its domestic fund could also look at acquiring completed assets, said the company managing director Sanjay Ubale. The company is also exploring options to launch a second offshore fund with one of Tata Group’s finance companies, said a spokesperson.
Many fund managers such as Indiareit, Red Fort Capital and the Essel group are raising real estate funds. Recently, Indian Property Advisors floated by a former Indiareit managing director, is looking to raise Rs 300 crore via a domestic fund and $250-300 million (Rs 1,500-1,800 crore) via offshore funds.
Additionally, TRIL is exploring the possibilities of floating a real estate investment trust (Reit) in India once the final regulations on these are issued. And, another in Singapore in the next three to four years.
The Securities and Exchange Board of India recently issued proposed guidelines for Reits, almost five years when norms for similar investment vehicles were announced.
Reits are like real estate mutual funds, where investors can pool money to buy a real estate asset. A Reit can also be listed on stock exchanges.