HDFC to launch realty fund in FY07

HDFC will launch its global realty fund of Rs 1,000 crore in the first quarter of 2006-07. The international fund will enable non resident Indians and foreign institutional investors to invest in real estate projects in India. Originally, HDFC had planned to launch the fund in the current year.

Thus far, HDFC has focused on making allocations under its Rs 1,000 crore Property Fund that was launched in July this year, said Renu Sud Karnad, executive director, HDFC, at a press conference today.

Karnad said about Rs 600 crore of the Rs 1,000 crore Property Fund has been allocated to projects in Mumbai, Delhi, Bangalore and Chennai.

Commercial and residential real estate projects will each account for 30 per cent of the fund, while the balance will be on projects developed for leased space, among others.

"We have plans to open offices in the UK and US as more non-resident Indians (NRI) living in these countries want to return back to India and settle after happenings such as September 11, 2001 and recent bombings in London,"she added.

She said HDFC was catering to huge NRI population from its office in Dubai, UAE and service associates in Bahrain, Kuwait, Oman, Qatar and Saudia Arabia.

HDFC Property Fund is a seven year close-ended real estate venture fund called HDFC India Real Estate Fund.

The funds from the scheme have been invested in equity and equity linked instruments of companies engaged primarily in real estate projects in major cities in India.

The fund has been launched in association with State Bank of India. HDFC holds close to 80 per cent and SBI the remaining stake while the fund is managed by HDFC Venture Capital Ltd.