Red Fort Capital is planning to launch a second offshore fund next month, Red Fort India Real Estate Fund II, to the tune of RS32 billion ($795 million; €516 million), according to local press reports. The vehicle, which follows Cayman Islands-based Red Fort India Real Estate Fund I, will invest in the Indian real estate market.
Red Fort India Real Estate Fund II is expected to close in June. Predominant investors include individual investors, corporate entities, pension funds, insurance companies, foundations, endowments and governments in Europe, the US and other countries, according to Red Fort Capital partner Subhash Bedi. The fund will invest in the residential, commercial, retail and hospitality sectors.
“We are expecting returns of 30 percent,’’ Bedi said in the report, adding that the volatility in stock markets would provide a good opportunity for investors to diversify and invest in the property sector. “We have given returns of 55 percent to our international investors with our first offshore fund.”
Main investments for Red Fort’s first fund, the $400 million Red Fort India Real Estate Fund I, include investments in projects of the Bangalore-based Prestige Group and township project of the Hyderabad-based Indu Group.