rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » 3i to put in $40 mn in Piramal offshore fund

3i to put in $40 mn in Piramal offshore fund

August 03, 2006 10:34 IST

European private equity major 3i Group is set to invest $40 million (about Rs 1.9 billion) in India-focused real estate venture fund, Indiareit. It is a Mauritius-based offshore fund recently launched by the Ajay Piramal group.

The investment marks 3i's foray into the country's real estate market. Post investment, 3i Managing Director and Co-head (Asia) Mark Thornton will be appointed to the investment committee of Indiareit Fund.

Indiareit started the $160 mn offshore fund soon after the launch of its domestic venture capital fund with a corpus of Rs 350 crore (Rs 3.5 billion) in the country early this year.

While Indiareit's domestic fund would make investments in real estate projects in the country, the offshore fund would only focus on the FDI related projects in the country.

The investment objective of Indiareit will continue to be long-term capital appreciation by means of equity participation in specific real estate projects based on identified sectoral gaps across residential, commercial and retail segments in various locations.

According to Ajay Piramal, chairman, Piramal Enterprises, Indiareit will benefit from 3i's proprietary systems and procedures and its international exposure in the venture capital business, whereas 3i will be able to understand and appreciate the domestic realty market through the strong Indiareit management.

Do you want to discuss stock tips? Do you know a hot one? Join the

BS Corporate Bureau in Mumbai
Source: