Undeterred by the ongoing global financial meltdown, private equity firm Red Fort Capital plans to invest Rs 3,200 crore by next year to cash in on the liquidity crunch in the real estate sector.
"Since the global financial crisis started last month, the number of proposals to us have increased by over 50 per cent, some of them are well-established, big developers," Red Fort Capital (RFC) Director Kuldip Chawlla said.
Impact of the global financial crisis became prominent, when foreign partners of developers backed out after the meltdown began, he added.
"As more lending curbs are in place, so we are having lots of opportunities now. We are in the process of closing a number of transactions in many cities. We are currently talking to about 10 developers in these cities," Chawlla said.
The real estate focused PE fund has planned to pump in Rs 3,200 crore in the next one year to pick up an average 50 per cent stake each in 10-12 projects located in equal number of cities, including the National Capital Region, Mumbai, Bangalore, Kolkata, Chennai, Pune and Hyderabad, he added.
Without divulging the name of the builders, he said three of them are "big national developers", while the rest constitute local players.
"These projects will primarily comprise residential, office spaces, budget hotels and warehousing and logistics spaces," Chawlla said.
The company would invest in affordable housing projects only, he said.
"We are looking for both IT and non-IT office spaces. We are also planning to invest in about 4-8 budget hotels in Tier I and II cities," he said.
