MUMBAI: Real estate fund Infinite India, floated by JM Financial and Old Lane — The New York-based India-focused hedge fund — are in advanced negotiations with textile firm Wearology to pick up majority stake in two real estate projects.
Wearology is in the process of developing over 500 acres of land in various parts of Mumbai. The company is also developing another 100 acres of land owned by its subsidiary Gopi Resports at Karjat, a Mumbai suburb. The firm is focusing on residential real estate development in Karjat area.
When contacted, a senior Wearology official said, “We are in negotiations with various funds for our real estate projects. Some agreements will be signed early next month. Currently, we cannot divulge any specific names.” If the talks materialise, these funds will be investing approximately Rs 200 crore in Wearolgy’s real estate projects.
Recently, in a separate deal, the Wearology had entered into an agreement with Israeli developer Alony Hetz and LJCB Investments for the development of another 500 acres in Karjat. Alony Hetz plans to build a $160-200 million 450,000-square meter second home holiday house project in a JV with Wearology at Karjat.
Demand for large office complexes, malls and residential properties has fuelled a demand for land, which has also attracted large foreign companies and funds to invest in the Indian real estate sector. The robust trend has also prompted several companies to develop their real estate assets and to realise gains from the on-going boom.
National Housing Bank estimates the overall housing shortage at 31.1 million units. It is estimated that India needs an investment of $60 million to meet the demand. Old Lane has a $500-million India opportunities fund, which is in the process of investing in the infrastructure and real estate projects.
Infinite India has also launched a $400 million real estate fund focusing on residential, commercial & retail sectors. Old Lane has teamed up with RR group of Chennai to develop a 2million sq ft IT and ITeS park. It has also tied up with HDFC and Sterling group in Bangalore. Old Lane has already invested about 40% of its $500 million India fund.
http://economictimes.indiatimes.com/Markets/Real_Estate/Commercial/Old_Lane-JM_Fin_fund_in_talks_to_buy_stakes_in_two_realty_projects/articleshow/2081566.cms
Wednesday, May 30, 2007
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment