Indiareit on road with $800m RE fund

The Piramal-owned firm has already received a $250m commitment from 3i.

India-based Piramal group’s investment firm Indiareit Fund Advisors is raising up to $800 million (€516 million) for a second Indian real estate fund.

Piramal Group chairman Ajay Piramal revealed the plans to reporters at an unrelated conference to announce the rebranding of its pharmaceuticals, diagnostics and glass ventures firms. He said the group planned to formally launch the fund in April after it obtained approvals. The fund will be an offshore fund seeking global investors, but will invest in FDI-approved projects in the domestic Indian market.

Indiareit currently manages a total of $450 million and has two domestic and one offshore fund. It’s parent company, Piramal Group, is mainly known for its flagship pharmaceutical company, Nicholas Piramal, which has now been rebranded as Piramal Healthcare.

3i, which confirmed the Indiareit investment, has invested over $200 million in India over the past 18 months through seven direct investments. The firm said it planned to invest a further $1billion in Asia over the next three years. 3i launched a $1 billion dedicated Indian infrastructure fund in August 2007, and in December it made a $101 million investment in Hyderabad-based infrastructure company Soma Enterprise.