Bahrain’s Khaleeji Commercial Bank has raised $163.5 million for a real estate investment company focused on India, the firm announced Thursday.
The fund, Danat India Investment Company, will invest in a middle-income residential development project near New Delhi. The firm would not disclose the name of the development or further details about it.
Khaleeji chief executive officer Ebrahim H Ebrahim said that the fund will have a target return of 83 percent over a three-year period. The fund will specifically target opportunities generated by India’s burgeoning middle class.
Investors from the fund come from the GCC states. This is the bank’s first investment drive in India, having previously always focused on the gulf region and North Africa.
Khaleeji isn’t the first Middle East investment firm to be eyeing the subcontinent. Last year United Arab Emirates-based Khaleej Finance and Investment has closed on a $200-million (€147 million), India-focused Shariah-compliant private equity fund, which will invest half of its capital in real estate and development projects in the country. Following this, Khaleej Finance partnered with two Kuwait-based investors, Kuwait Investment Companyand Kuwait Finance House, to manage and promote the Indian Private Equity Fund, a Sharia compliant $200 million (€149 million) fund that will target real estate and industry in India. In November Gulf Finance invested $630 million in an infrastructure project in Navi Mumbai, and in March Abu Dhabi Investment House launched the India Entertainment City Shariah-compliant fund.