RREEF buys stake in Indian property firm

The firm has made its first investment in India, sinking $70m into a Bangalore- and Hyderabad-based residential developer.

RREEF, the investment management arm of Deutsche Bank, has bought an undisclosed stake in Bangalore and Hyderabad-based residential developer Golden Gate Properties for Rs. 2,735 million ($70 million, €48 million).

The company is involved primarily in residential projects, and is building nine projects with 20,000 units with a built-up area of 23 million square feet. It has a portfolio of ten completed projects in Bangalore and Hyderabad, eight residential and two commercial. The company is targeting mixed-use developments and Special Economic Zones across South India.

“India is presently a particularly attractive emerging real estate market for our high return oriented clients and in time will mature into an important investment destination for RREEF’s broader base of institutional and retail clients,” said Kurt Roeloffs, RREEF chief executive officer for Asia Pacific, in a statement.

The acquisition is RREEF’s first property investment in India, but it is not the first for Deutsche Bank. In september Deutsche Bank Singapore led a group of private equity investors in acquiring a 25 percent stake in a special purpose vehicle owned by Mumbai-based developer Lodha Group for Rs 1,700 crore ($425 million, €298 million). That SPV will invest in three real estate projects in India’s commercial hub of Mumbai, Lodha Group said. JPMorgan Chase and ICICI Bank’s venture capital unit have also invested in the vehicle. The SPV will set up three FDI-compliant real estate projects over 70 acres in Thane and Dahisar.

The investment is just the latest in a series of Indian real estate deals to come over the past several months. Citigroup, Apollo Management and Warburg Pincus are just a few of the firms that have invested in Indian development firms recently.