Indiareit Fund invests Rs 200 crore in realty projects

Real estate private equity arm of Piramal Enterprises, Indiareit Fund Advisors, today said it has invested Rs 200 crore in realty projects in Mumbai, Bangalore and Pune.

The company has made two investments worth Rs 100 crore each in projects of Omkar Realtors and Developers and Marvel Group, it said in a statement issued here. The first investment, worth Rs 100 crore, was in a residential project developed by Omkar Realtors and Developers at Bhoiwada in central Mumbai, while the second deal of Rs 100 crore was in the projects of Marvel Group in Pune, Bangalore and Mumbai. The second investment was made from Indiareit Domestic Scheme IV, which has a total corpus of Rs 900 crore, the release said. "Indiareit's investment is tied to a basket of pre-identified city centric projects across Pune, Bengaluru and Mumbai that are in various stages of construction and delivery. The investment is structured to provide an appropriate return over a defined hold period along with adequate security cover," Indiareit Managing Director Khushru Jijina said. All the projects are situated in city centric locations and benefit from ease in sanctions and approvals and strong end-user demand leading to relatively quick turnaround times, he said. "These transactions are representative of the attractive returns that we are able to structure in the market today, with the added benefit of mechanisms in place to protect downside and provide adequate security cover," Jijina added.