Yatra Capital to tap Euronext again

The NYSE Euronext-listed Yatra Capital, promoted by Saffron Asset Advisors, is planning the second round of fund-raising worth $140 million on the exchange in the next couple of months.

Yatra raised $140 million on the Amsterdam-based NYSE Euronext in December 2006 to become the first and only real estate investment company from India to be listed on the exchange. The company will invest $1 billion in realty projects in 2-3 years.

"We will be investing our first fund in the next two months. The process of raising the second fund has already started. Euronext gives broader capital base for companies among European investors. We were waiting for the NYSE to buy Euronext, which will give the exchange a truly international flavour," said Ajoy Veer Kapoor, managing director, Saffron Asset Advisors.

According to industry estimates, between February 2005 and March 2007, the domestic real estate industry saw nearly $7 billion investment from private equity funds including Citigroup, Goldman Sachs, Morgan Stanley, Blackstone and Trinity.

Rising interest rates, squeeze on lending to commercial real estate, Alternative Investment Market losing its sheen and the delay in IPOs have prompted many Indian developers to opt for private equity funds. Yatra raised funds from institutional investors in Europe, including Standard Life, Fortis, ING Clarion and Alpine. In the second round, it plans to raise money from the the same sources.

Though Kapoor declined to comment on the investment made by Yatra, he said the fund has invested in the projects in Pune, Indore, Nashik and Mumbai.

The fund is considering opportunities in Kolkota, Udaipur, Raipur, Kochi, Kozhikode, Ahmedabad, Bhubaneswar, Mysore and Jamshedpur, he said.

"We are investing in tier-II and III cities also. We will raise small pockets of money to invest in quality Indian projects, building good track record of investments and giving handsome returns to our investors. Our aim to is to build a strong foundation for our ventures in the next 20 years," Kapoor said.

Saffron also has third-party $100 million private equity fund, which is listed on AIM of London Stock Exchange (LSE).