Samsara Capital invests Rs 170 cr in Embassy Group

Samsara Capital, a $200 million US-based real estate fund, is investing $41 million (around Rs 170 crore) in Bangalore-based real estate developer Embassy Group. This is the second investment from Samsara in Bangalore-based developer, the first being a $32 million (around Rs 130 crore) investment in IDEB Projects.

According to information available, Samsara has invested in a special purpose vehicle created by Embassy Group for developing a residential complex in a 25 acre plot in Old Madras Road, east of Bangalore. Embassy Group is a two-decade old firm and in the recent past has built a massive IT corridor adjacent to the Airport Road. According to industry sources, Embassy Group has assets worth at least Rs 1,000 crore.

Sanjay Shah, managing partner, Samsara Capital confirmed the investment in Embassy Group and said that they are increasingly focusing on various projects in South India. In addition the investments in Bangalore, Samsara has also invested close to Rs 210 crore ($50 million) in the Indian JV of Amsterdam-based hospitality group, Golden Tulip. Golden Tulip properties are expected to come up in Bangalore, Goa and Jaipur.

Samsara joins a growing list of global and India private equity funds such as Morgan Stanley, Goldman Sachs, Sun-Apollo, Blackstone as well as Kotak, ICICI Ventures and IL&FS Investment vying with each other to get a piece of the booming Indian real estate market.

In the recent past, Bangalore real estate market has been witnessing the strongest ever growth as private equity funds is understood to have committed more than $2 billion during 2007 alone. One more reason for this PE rush can also be associated with the stock market boom which is being witnessed in the Indian markets. Large scale IPOs of DLF Group and Sobha Developers, which gave institutional investors smart returns are also driving this market to dizzier heights.