JP Morgan’s $360 million India-focused investment vehicle has committed $25 million to an IT park development in Navi Mumbai, a planned city founded in 1972 east of Mumbai, according to reports.
The development is on a 40-acre site near Patni Knowledge Park in the city which will house IT and communications companies. According to news reports, the JP Morgan fund will buy 40 percent of the IT park, which will be developed by the B. Raheja Group. Both companies have declined to comment on the deal.
The B Raheja Group will reportedly consider applying for an IT SEZ notification for the development. The group recently got a $45 million cash infusion from Wachovia for two of its projects in Bangalore.
JP Morgan’s realty fund has made other investments in Indian developers, but nothing on this scale. The firm has invested $10 million in Modi Developers for development of middle-income housing, and it has also invested the same amount in Arihant Foundations for a similar project.
Indian IT park developments have become increasingly popular with investors. Trinity Capital, a publicly listed London-based fund managed by Trikona Capital, invested £37.9 million ($74.7 million) for a 49.4 percent stake in IT park Luxor Cyber City, outside Delhi International Airport, in June.