Indian firm raises $800 million for real estate fund
Housing Development Finance, one of the largest Indian mortgage companies, said Thursday it raised $800 million from overseas investors for a real estate fund to tap the nation's surging demand for homes and offices.
The company, based in Mumbai, is seeking a 20 percent to 25 percent return for the nine-year fund, Housing Development said. The fund is the biggest dedicated to real estate in India, surpassing the $630 million Sun Apollo Real Estate Fund, according to Real Estate Intelligence.
"Most of the funds are showing good appreciation," said S. Karthikeyan, chief executive at Real Estate Intelligence, a firm based in Mumbai that tracks the property market. "Since we have not seen exits so far, we have to see how much money they actually make when the time comes to sell their property."
The Indian real estate development market may increase more than sevenfold to $90 billion by 2015 from $12 billion in 2005, Moody's Investors Service said in June. Funds of global investment banks are investing in Indian property as the economy grows rapidly.
India will need as many as 10 million new housing units a year by 2030, according to estimates by the Asian Development Bank. The Indian central bank restricts bank lending to real estate since it is considered sensitive and speculative and may lead to losses. Funds are stepping in to fill the financing gap.
Source//http://www.iht.com/articles/
The company, based in Mumbai, is seeking a 20 percent to 25 percent return for the nine-year fund, Housing Development said. The fund is the biggest dedicated to real estate in India, surpassing the $630 million Sun Apollo Real Estate Fund, according to Real Estate Intelligence.
"Most of the funds are showing good appreciation," said S. Karthikeyan, chief executive at Real Estate Intelligence, a firm based in Mumbai that tracks the property market. "Since we have not seen exits so far, we have to see how much money they actually make when the time comes to sell their property."
The Indian real estate development market may increase more than sevenfold to $90 billion by 2015 from $12 billion in 2005, Moody's Investors Service said in June. Funds of global investment banks are investing in Indian property as the economy grows rapidly.
India will need as many as 10 million new housing units a year by 2030, according to estimates by the Asian Development Bank. The Indian central bank restricts bank lending to real estate since it is considered sensitive and speculative and may lead to losses. Funds are stepping in to fill the financing gap.
Source//http://www.iht.com/articles/
posted by Real Estate India at
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