With the purpose of investing in the realty sector, especially in the residential sector of Bangalore, Valmark Group will raise Rs.125 Cr.
BANGALORE: Bangalore based Valmark Group is thinking over raising Rs.125 Cr fund for investing in the real estate sector. As per the available sources the fund will be mainly invested in for the development of five to six residential projects across Bangalore.
Persons with direct knowledge said that the main focus of the fund will be residential market of Bangalore.
Valmark Group expects a minimum return of 15%. However, the group says, that the returns can go up to 36%. Though the first PERE Fund of Valmark Group is expected to be invested in for five to six years, the group officials do not discard the possibility of an extension of two more years.
If there is no chance for an exit with expected returns, the fund will stay invested in realty for two more years; Jaswant Munoth of Valmark Group confirmed the plan.
The group plans to invest the entire amount in to residential realty. Five to six projects will be funded.
Commenting on the development Valmark Group MD Ratan Lath said that the entire fund will be invested in realty. He added that the average size of each fund will be Rs.25 Cr to Rs.30 Cr.
Valmark Group is now developing over 1.8 sq. ft. projects. Their projects are mainly launched in and around Bangalore. Recently the group has signed agreements with Brigade Group of Developers, Embassy, K Raheja Developers, Nitesh Estates and Unitech Group for developing projects.
The group has land bank across Bangalore. The group also plans to develop projects in other smaller cities like Mysore.
The group has recently invested Rs.25 Cr in one of the upcoming residential project of Indya Estate. The project is named ‘The Greens.’ Apart from this the group is reported to be in talks with many other developers.
