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Red Fort to invest in six developments in India

The Indian private equity firm has acquired a 49 percent stake in a project in Kolkata and is set to invest in further projects in the National Capital Region, Mumbai and Bangalore.

Red Fort Capital, a domestic Indian private equity real estate firm, is in advance stages of negotiations with six developers for projects across India worth Rs 4,000 crore ($942 million, €605 million), its director told an Indian news outlet.

The first of the deals has already been agreed, a 49 percent stake in a development project by Godrej Properties to develop an IT park in Kolkata. Marking the occasion, Red Fort Capital director Kuldip Chawlia told Indian news outlet PTI that the firm is currently in talks with six different developers in the National Capital Region of Delhi, Mumbai and Bangalore, currently evaluating one residential and one commercial project in each city, looking at picking ups takes of between 30 and 80 percent.

The Kolkata project is the firm’s first in that city, and will have a developable area of over one million square feet.

In March, Red Fort said it is planning to launch a second offshore fund, Red Fort India Real Estate Fund II, with a size of around RS32 billion ($795 million; €516 million). The vehicle will follow the $400 million Red Fort India Real Estate Fund I, which the firm says has delivered returns of 55 percent to its investors. Main investments for Red Fort’s first fund include investments in projects of the Bangalore-based Prestige Group and township project of the Hyderabad-based Indu Group.