Biyani's realty AMC to invest $45mn in Pune

Kshitij Investment Advisory Company (KIAC), the real estate asset management company of the Kishore Biyani-controlled Future Group, will form a joint venture company with Pune's real estate developer City Corporation to build a 2.8 million sq ft Market City within the Amanora Park township being developed by City Corporation.

Shishir Baijal, managing director and chief executive officer, KIAC said the company will invest $45 million as equity from a $430 million combined corpus of Kshitij Venture Capital Fund and Horizon Realty LLC that have committed to invest funds in the real estate sector.

Another $45 million will come as equity from City Corporation in a special purpose vehicle company - City Realty- and the rest will be raised as debt, Baijal added.

Amanora Market City will be the seventh Market City being developed by Kshitij across the country. The other six in Mumbai, Hyderabad (2), Bangalore(2) and Chennai  are in varoious stages of development, he said.

Baijal said Market City is envisioned as a mixed-use retail destination, which will combine retail, entertainment, hospitality and offices in one location. The project will comprise a 300-room hotel, a convention centre, service apartments, residential apartments and community centres with amphi-theatres.