Fire Capital plans to invest $300 m in Indian realty mkt
The Economic Times, June 16, 2009, Page 6
Ravi Teja Sharma NEW DELHI
PRIVATE equity fund Fire Capital is looking at investing $100 million a year for the next three years in the Indian real estate market. The fund will raise the money this year and hopes to make the investments in 2010. “Our investors are willing to invest in projects which are sound, can stand on their own and come at the right valuation,” says Fire Capital chief executive officer Om Chaudhry.
The fund recently announced its second FDIcompliant integrated township project in Nagpur, spread over 152 acres in a joint venture with a local Nagpur-based developer Arcor Group.
“If the projects and managements are sound, investors will still come in. They will not want to invest if developers are raising capital just to replace costly debt. There have to be real projects, real demand and real risk adjusted returns,” says William A Eagan III, director, board of advisors at Fire Capital. Eagan is also one of the LPs of Fire Capital.
Fire Capital has been concentrating on providing affordable housing through large integrated township projects. Its first project in Indore has now entered its second phase and the fund has finalized investment of close to $90 million across three JVs with local developers in Jaipur, Bangalore and Chennai. These three integrated townships will be announced by the third quarter of this fiscal, says Chaudhry.
With the $300 million it plans to deploy over the next three years, Fire Capital has plans to develop 10 more integrated townships in tier II and tier-III cities. “For tier III cities, we are looking at smaller 25-acre township developments,” he says. Tow third of this $300 million will be deployed for housing while the balance will be used for opportunistic investments in healthcare, education and hospitality which would eventually help them secure these services in the townships.
The Economic Times, June 16, 2009, Page 6
Ravi Teja Sharma NEW DELHI
PRIVATE equity fund Fire Capital is looking at investing $100 million a year for the next three years in the Indian real estate market. The fund will raise the money this year and hopes to make the investments in 2010. “Our investors are willing to invest in projects which are sound, can stand on their own and come at the right valuation,” says Fire Capital chief executive officer Om Chaudhry.
The fund recently announced its second FDIcompliant integrated township project in Nagpur, spread over 152 acres in a joint venture with a local Nagpur-based developer Arcor Group.
“If the projects and managements are sound, investors will still come in. They will not want to invest if developers are raising capital just to replace costly debt. There have to be real projects, real demand and real risk adjusted returns,” says William A Eagan III, director, board of advisors at Fire Capital. Eagan is also one of the LPs of Fire Capital.
Fire Capital has been concentrating on providing affordable housing through large integrated township projects. Its first project in Indore has now entered its second phase and the fund has finalized investment of close to $90 million across three JVs with local developers in Jaipur, Bangalore and Chennai. These three integrated townships will be announced by the third quarter of this fiscal, says Chaudhry.
With the $300 million it plans to deploy over the next three years, Fire Capital has plans to develop 10 more integrated townships in tier II and tier-III cities. “For tier III cities, we are looking at smaller 25-acre township developments,” he says. Tow third of this $300 million will be deployed for housing while the balance will be used for opportunistic investments in healthcare, education and hospitality which would eventually help them secure these services in the townships.
Posts
No comments:
Post a Comment