HDFC fund to invest 2 bln rupees in Delhi property project - sources
By Indulal PM
MUMBAI (Reuters) - A fund managed by Housing Development Finance Corp. will invest about 2 billion rupees ($41 million) in one of the projects of New Delhi-based real estate developer ATS Infrastructure Ltd, two sources with direct knowledge of the matter told Reuters.
The investments from HDFC would be for the developer's Gurgaon project near the national capital, said the sources, who declined to be named as the talks were private.
ATS did not return e-mail seeking comments, while HDFC did not comment.
ATS is building two large residential projects in Gurgaon with an investment of over 5.4 billion rupees. The company plans to complete the projects in three years, said the sources.
HDFC group has significant exposure to India's real estate sector with a $800 million dedicated real estate fund. In addition, its portfolio management services and a fund managed by HDFC Bank invest in property projects.
Private equity investment in Indian property is down slightly during the first nine months this year, to about $784 million, from $817 million at the same time last year, data from VCCircle.com, an industry tracker, showed.
Domestic fund houses including Kotak Real Estate Fund, IndiaReit and ASK Investments are all in the process of raising funds totalling about $1 billion, fund officials have told Reuters.
(Reporting by Indulal PM; Editing by Subhadip Sircar)Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.