Arch Cap Mgmt to invest $100m in realty by 2010

Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

By Anumeet Kaur Bisen, CNBC-TV18

 

There may be a lull in the Indian real estate market, but dollars continue to pour in. Hong Kong-based Arch Capital Management will invest USD 100 million in Indian realty over the next two years.

 

India's property market continues to attract foreign investors. Ayala Corporation and it's affiliate-Arch Capital Management-is expected to invest USD 100 million in property in India in the next two years. Ayala is one of the largest real estate brands in Phillippines.

 

Currently, this private equity fund is evaluating property in Chennai, Hyderabad, the National Capital Region, Mumbai, Pune and Bangalore. Sources say it will subsequently consider smaller cities, as there is more room for development. Sources also say residential projects are top on Arch Capital Management's priority list as it is easier to exit them. But the fund is open to investing in retail and IT projects.

 

Arch Capital Management closed its first deal in India last month with Mahindra Lifespace Developers. It will develop a residential township in Chennai - a project in which it holds a 49% stake.