Deutsche Bank Singapore has led a group of private equity investors in acquiring a 25 percent stake in a special purpose vehicle owned by Mumbai-based developer Lodha Group for Rs 1,700 crore ($425 million, €298 million).
The SPV will invest in three real estate projects in India’s commercial hub of Mumbai, Lodha Group said. JPMorgan Chase and ICICI Bank’s venture capital unit have also invested in the vehicle. The SPV will set up three FDI-compliant real estate projects over 70 acres in Thane and Dahisar.
This is the third private equity investment in Lodha, which has more than 25 million square feet of land in 27 projects in Mumbai, according to the company. ICICI Ventures has also purchased a 25 percent stake in Lodha group’s Simtools property in Thane for Rs 100 crore. Lodha has also received private equity investment from JP Morgan, which had invested Rs 274 crore in a debt-cum-equity deal in residential property Lodha Bellissimo.
The Indian real estate sector has seen a recent boom which as resulted in a rush of fundraising for the country. Foreign firms such as Morgan Stanley, Citigroup, Och-Ziff and AIG have completed funds for India and are now starting to invest. In August the Mumbai-based Housing Development Finance Corporation (HDFC) closed on a new $800 million (€587 million) fund that will invest in Indian real estate on behalf of 28 foreign investors. Also in August, 3i Group launched a $1 billion (€740 million) fund to invest in the rapidly growing Indian infrastructure market. And in June, Bahrain-based Khaleej Finance and Investment (KFI) partnered with two Kuwait-based investors to manage and promote a $200 million (€149 million) fund that will target real estate and industry in India.