New Delhi: ICICI Venture Funds Management Co. Ltd, the private equity arm of India’s largest private sector bank ICICI Bank, plans to raise Rs750-1,000 crore ($167-223 million) for its second real estate fund, the India Advantage Fund (IAF) 2.
The fund will raise capital from domestic banks and high net worth individuals and focus primarily on residential real estate projects of mid-sized developers. “We will be looking at projects situated in cities such as Delhi-NCR, Mumbai, Pune, Bangalore and Chennai. It would take at least 6-9 months to raise the capital,” said Sanjeev Dasgupta, president (real estate) of the company, while refusing to disclose any deals in the pipeline.
ICICI Venture had earlier raised Rs2,465.5 1, in 2005. This focused on $550 million for its first realty fund, IAF residential, commercial and mixed land use projects.
With a number of India-dedicated real estate funds getting launched recently, private equity has become a favoured route among the property developers to get funds. ICICI Venture realty funds are among the biggest domestic funds in the space.
“Apart from prime markets such as Mumbai and Delhi-NCR, private equity funds have also opted to invest in large residential projects in Tier II cities,” said Anuj Puri, chairman and country head of property consultants Jone Lang LaSalle India.