RootCorp, a joint venture involving London-listed property services company Savills, has launched a real estate fund targeting India.
The India Debt & Yield Opportunities Fund is a Mauritius Investment Company and available to European investors.
The fund will invest in yield-oriented assets and development opportunities in high growth areas of India, focussing on cities such as Bangalore, New Delhi and Mumbai. The assets are related to projects in sectors including residential, commercial, ‘smart’ cities, and special economic zone projects.
A minimum investment of $10 million (€9 million) is required for institutional investors and $5 million for family offices and ultra high-net-worth individuals.
The other joint venture partners are Indian multinational real estate developer Sobha Group and business house Nichani Group.
RootCorp says the Indian real estate sector is expected to increase seven-fold by 2028 in response to the urban housing shortage, which was estimated at around 18.8 million units in 2012.
Rapid growth in service sectors such as IT and telecoms is also driving demand for commercial space, while the strong domestic tourism industry and increasingly global nature of Indian business is boosting hotels and the hospitality market.
Overall, the organised retail sector is estimated to be growing by around 25–30% a year.
Suresh Nichani, vice chairman of RootCorp, says: “The fund seeks to benefit from the enormous opportunities which abound in the Indian property sector - India requires a city the size of Chicago to be built every year to house its growing population.”
RootCorp plans to develop further pooled funds, as regulated investment vehicles, that will invest initially in the Middle East and Indian real estate markets, and also in renewable energy. In the future the firm expects between 50% and 70% of its assets under management to be outside of India.
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