Mumbai: Real estate-focused venture capital fund, Indiareit Fund Advisors, has picked up 75% in a special purpose vehicle with Hyderabad-based Amsri Group to develop a mixed-use realty project at Bachpally, 9km from the existing airport.
“We have signed the deal recently. We will have the majority 75% stake in the SPV, while the remaining will be with the Amsri Group,” Ajay Piramal-spearheaded Indiareit Fund Advisors managing director and CEO Ramesh Jogani told PTI here.
Indiareit will put in over Rs70 crore in the project, which will be built on 9.5 acres.
“Almost 80% of the built-up area will be used for residential purposes, while the rest will cater to commercial purposes,” Jogani said, adding that the total built-up area of the project would be around 1.5 million square feet.
During the last 10 years of operation, Amsri Group has developed over several lakh square feet of projects and has over 2.2 million square feet of area under various stages of development.
“We expect the valuation of the project to be between Rs600-630 crore at the prevailing residential rates of the region,” Jogani said.
Large ticket transaction and the presence of leading national developers like DLF and Raheja’s and international developers like IJM, Malaysia and Indu Projects have made the area a veritable future destination, he said.
Jogani said Indiareit would stay put in the project for three to four years and hope to bag a return of Rs150 crore.
“We will invest in the project both from our domestic and international funds,” Jogani said.
Indiareit, in which 3i is a major investor, manages a Rs1,900-crore fund and has effectively deployed 65% of the total corpus as on date.
The company is in the process of raising another $750-million offshore fund in January next year.
With this additional corpus, Indiareit would be a leading player in the country’s venture space and it would be the only fund to come up with a fourth fund within two years of operation.