India Property Fund, managed by NRI investor Purnendu Chatterjee's TCG Real Estate and US-based Vornado Realty Trust, is in the final stages of investing Rs 270 crore in two residential developments in national capital region and Mumbai, said a person familiar with the fund's plans.
The fund will invest Rs 150 crore and Rs 120 crore in housing projects in Mumbai and Noida, respectively, and pick up 40-45 per cent in each of the projects, the person said.
"The $ 400 million Fund works with land-owners, state governments and developers (particularly mid-size developers who lack both capital and management talent) to develop international-quality real estate products, which cater to the high demand sectors of the industry. The Fund takes both controlling and minority positions," says TCG Real Estate's website.
The Fund also looks at investing in related sectors such as construction, mortgage financing and infrastructure. The Fund invests between $ 5 million to $ 50 million in each investment, the post says. TCG Real Estate is the property development and investment arm of Purnendu Chatterjee's The Chatterjee Group
Property developers are increasingly turning towards private equity funds for financing their projects as commercial banks have tightened their lending to real estate.
“With fresh lending remaining tight, PE players have started to get busy, as all developers have begun to offer good quality assets to raise project level PE fundings,” say analysts from Enam Securities in a recent report.