European property grp to invest $100 mn in India

Scottish entrepreneur Sir Tom Hunter has teamed up with Icelandic investor Baugur and Britain's HBOS to finance a $100 million fund set up by pan-European property group Catalyst Capital to invest in India.

Hunter traveled with Baugur chief John Asgeir Johannesson and Catalyst's Julian Newiss to India last week to conclude the deal, his spokesman said today.

The fund will include $40 million of equity and the rest will be debt.

It will invest in hotel development, house-building and land acquisition, initially around Mumbai and then other Indian cities. The fund sees significant investment opportunities in the growing Indian economy but will not compete for larger deals, preferring to remain a niche player.

The fund was part of Hunter's strategy to diversify investment interests outside the UK, the spokesman said.

Through the West Coast Capital investment deal, backed by HBOS, Hunter has recently concluded deals in continental Europe, China and America.