Indiareit to raise $500 mn offshore development fund: CEO

Real estate fund Indiareit Fund Advisors, a unit of drugmaker Piramal Healthcare, is planning to raise $500 million via an offshore fund to invest in Indian real estate projects. This was stated by a top executive of the company.To be launched after June, the fund will look at raising money from investors in America, Europe and Asia. Managing director and chief executive officer of the company Ramesh Jogani said that investors are now better- educated about investment opportunities in India. They have become more matured and are more investor-friendly. The company is launching the fund at a time when India's debt-strapped developers are facing limited funding options. This is because banks are now more cautious about lending to the sector and international private equity players are looking to exit investments.
Since 2005, international private equity firms have invested $13 billion in the Indian real estate sector. These companies are expected to take out up to $5 billion worth of investments over the next couple of years. This was stated by an international property consultancy Jones Lang LaSalle.
Given the current spell of crisis in the European countries, foreign investors are looking at India for more and more investment.