Khaleej to invest $100m in Indian real estate

Half of UAE-based Khaleej Finance and Investment’s $200m Indian private equity fund will go into the country’s real estate sector.

United Arab Emirates-based Khaleej Finance and Investment has closed on a $200-million (€147 million), India-focused private equity fund, which will invest half of its capital in real estate and development projects in the country.

“The real estate and real estate development sectors in India are attracting the biggest Indian and international companies,” Talal Kaiksow, wealth management director at Khaleej, said in a statement. ”Economic observers expect the demand in real estate development projects to reach 63 million square feet in 2009.”

The other half of the fund will focus on private equity investments in the sugar, iron, cement, pharmaceutical, biotech, information technology and telecommunications sectors, according to the firm.

ICICI Bank, the second largest in India, is the fund’s financing partner. ICICI is working with New York property company Tishman Speyer on its own vehicle focused on Indian real estate. Subsidiary ICICI Home Finance Company will be the fund’s real estate advisor.

The Sharia-compliant fund attracted individuals, who had to commit at least $250,000, and institutional investors, who committed up least $1 million. It is aiming for an IRR of 25 percent.