RREEF plans $1bn of investment in India

The alternative investment manager has set up an office in Mumbai with a former ICICI pro at its helm, and struck its second deal in the country, a stake in a $400 million development in Hyderabad.

New York based alternative asset manager RREEF, owned by Deutsche Bank, has opened an office in Mumbai to direct its upcoming push into Indian real estate and infrastructure. RREEF India Advisors, as the local business is being called, is being staffed by an initial team of six professionals, according to the firm.
The new entity is being led by Kishore Gotely, who left Indian private equity house ICICI Venture last September, where he was headed their $550 million real estate fund. “I am confident that over time India will become an important investment destination for RREEF’s broader base of institutional, insurance and retail clients,” he said.

Kurt Roeloffs, who heads RREEF Asia Pacific, said at an event unveiling the new operation that RREEF plans to invest $1 billion in India across the real estate and infrastructure sectors over the next 3 years. It recently completed its second deal in the emerging market, buying a 60 percent stake in a joint venture with NCC Urban Infrastructure. That joint venture will develop a $400 million (€256 million) mixed use project in an IT zone in western Hyderabad.

Hyderabad, known for years as a research and development hub, has recently developed into an IT/ITeS hub as well, with many locals now giving it the nickname “Cyberabad.” This has spurned many new real estate developments in the area catering to the high-tech needs of such companies.

RREEF’s first deal in India was in January, when it took a stake in Bangalore and Hyderabad-based residential real estate development company Golden Gate Properties for $70 million.

Globally, RREEF Alternative Investments has $91.3 billion in real estate, infrastructure and private equity assets under management as of December 2007. Headquartered in New York, RREEF Alternative Investments employs more than 1,450 investment professionals in 18 cities around the world.

Though RREEF has country-specific funds in East Asia, Roeloffs told reporters that the firm has no plans to launch an India-specific fund at present.