Bangalore: IL&FS Investment Managers Ltd (IIML) has invested 100 crore in Future Towers, a residential building that is a part of the Amanora Park Town integrated township project in Pune.

IIML and City Corp. Ltd, the entity developing the 450 acre project, have entered into a deal for an equal shareholding in the project, said Aniruddha Deshpande, managing director, City Corp.

Future Towers, which involves a million sq. ft of development, will have a mix of apartments ranging from 500-5,000 sq. ft, he said. It is under construction.

Amanora Park Town is a township with about five million sq. ft of residential space, 500,000 sq. ft of offices and another 1.2 million sq. ft of retail shopping mall developed in the past five years.

“We wish to confirm the investment of 1,000 million in a residential project in the Amanora township. However, as a company policy, we cannot disclose the specifics of the transaction," an IIML spokesperson said in an email reply. In an earlier deal, Horizon Realty Fund Llc, a part of Everstone Capital Advisors (a spinoff of Future Capital Holdings Ltd), invested 125 crore in the mall at Amanora Park Town.

On Monday, City Corp. announced another luxury residential project, Gateway Towers 1, at Amanora Park Town, in which it will collaborate with Swarovski for lighting and design.

Most PE funds are investing in realty through a combination of debt and equity to minimize risks. The IL&FS investment in Amanora is a pure equity deal.

Residential projects are a safe bet for investors because investors get their returns as the flats are sold, said Sanjay Dutt, executive managing director, South Asia, at property advisory Cushman and Wakefield.

PE funds invested about $1.39 billion in 40 deals in 2011 and $423.67 million in 22 deals so far this year, according to VCCEdge, a research platform. Of this, they invested $315.21 million in residential projects last year, and around $225.87 million this year.

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