| Red Fort Capital, a global real estate private equity fund, is raising a Rs 800-crore, India-specific fund for the realty sector. This is in addition to its earlier allocation of Rs 1,600 crore for realty projects in the country. |
| The new domestic fund is expected to be announced by the end of December and the company will start investing in the fund from March next year. |
| “We plan to raise the capital from high networth individuals and corporates in India. A major part of the fund has been tied up,” said Parry Singh, director, Red Fort Capital Advisors. |
| He said the company would invest the Rs 800-crore, non-FDI fund in redevelopment projects in cities and non-FDI compliance projects, among others. |
| In the first fund of Rs 1,600 crore raised from international institutions, Red Fort has so far invested Rs 1,200 crore in realty projects in Bangalore and Hyderabad. |
| Red Fort announced its entry into the Chennai realty market on Wednesday. |
| It has acquired 10 acres for a residential project and expects to invest Rs 400 crore in housing projects in Chennai over the next six months. |
| Red Fort Capital proposes to develop a residential township, comprising houses for middle-income groups in Mogappair near Chennai. It plans to build 800 units and is currently engaged in discussions with various property developers for the project. |
| The cost of this residential project is expected to be Rs 200 crore and is likely to be launched by August next year. The company’s investment philosophy includes joint ventures, equity, mezzanine capital and land acquisitions for developing realty projects. |
| The company is also looking at building low-cost housing units near Sriperumbudur, the manufacturing hub of Tamil Nadu. |
Source: Business Standard