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Deutsche Bank, Funds Invest $425 Million in Lodha

Deutsche Bank AG, Germany's biggest, led a group of private equity firms in investing $425 million in Indian real estate developer Lodha Group to tap a market where property prices have doubled in two years.

The funds will be used for three real estate projects in India's commercial hub of Mumbai, Lodha Group said in an e- mailed statement. JPMorgan Chase & Co. and ICICI Bank Ltd.'s venture capital unit have already invested in the group, it said.

Deutsche joins Emaar Properties PJSC in investing in India, where the fastest wage growth in Asia Pacific is helping more of the nation's 300 million-strong middle class buy homes. JPMorgan expects developers may sell as much as $10 billion of shares in the next 18 months as the world's second-fastest pace of economic growth boosts demand for offices and homes.

Lodha has more than 25 million square feet of land in 27 projects in Mumbai, the statement said. The developer has a land bank of more than 4,000 acres, it said.

More than half a dozen real estate companies have raised about $3.5 billion this year, including India's DLF Ltd., which sold $2.24 billion of shares in India's biggest initial public offering.

Emaar MGF Land Ltd., the Indian unit of the Middle East's biggest real estate developer by market value, this week applied to sell shares for the first time.

The average price of a residential apartment in south Mumbai, India's commercial capital, more than doubled in the past two years to 22,000 rupees ($554) a square foot, according to Cushman & Wakefield. Office prices in the southern business district also doubled to a 10-year high.

Source: Bloomberg

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