Date:13/12/2007 URL: http://www.thehindu.com/2007/12/13/stories/2007121357311800.htm

Business

Red Fort Capital to launch Rs. 800 crore real estate fund

Staff Correspondent

CHENNAI: Red Fort Capital, an international private equity real estate firm, proposes to launch a Rs. 800 crore domestic real estate fund early next year. It will be targeting high networth individuals and corporates.

The fund would be used for redevelopment of existing projects, non-FDI projects and acquisition of lands, according to Parry Singh, Director, Red Fort Capital Advisors.

FDI route

Addressing a press conference here on Wednesday, Mr. Singh said the company has brought in Rs. 1,600 crore through the foreign direct investment (FDI) route. Of this, it had so far invested Rs. 1,200 crore in various projects.

Now the company had decided to invest Rs. 400 crore in Chennai alone over six months.

The investment would be across low-to-high end residential and hospitality projects. Red Fort Capital had started its activities in Chennai by acquiring residential land at Ambattur, he said.

Land bank

G. B. Singh, Director, said the company had acquired 10 acres at Ambattur in Chennai. Development work on this would start soon. It was scouting for a real estate developer for developing the project. Similarly the company had invested in 100 acres of land at Sriperurmbudur near Chennai for developing low cost apartment with the help of pre-fabricated materials and each flat would cost less than Rs. 10 lakh.

At present, the company was holding a land bank of 1,100 acres across the country.