IIFL To Raise Two New PE Funds to Invest in Realty

Aiming to invest in the real estate sector, India Infoline Ltd (IIFL) plans to raise two new funds. The group is on the verge to close its first two funds.

Private equity funds are considered as very keen to the real estate developers now. They are approaching PE firms for funding their projects. Builders always welcome all such funds. India Infoline Ltd.’s (IIFL) decision to raise two new funds also is welcomed by the developers.

IIFL has recently closed two earlier funds. Now they are planning to come up with two new funds. These funds are expected to be invested in the real estate sector.

Though IIFL has not decided what to develop with these new funds, sources close to the firm report that they will use these funds for developing a residential project and an office space project.

The senior officials of the IIFL have informed that the new funds will be focused on domestic investors. They added that the funds will be invested mainly for developing a residential and a commercial project.

Developers are said to have keen support from the PE firms who invest with the developers. While the developers use these PERE investments for developing their projects, PE Firms are looking at the real estate sector for better profit.

Developers use such funds for paying for the land parcel and for meeting the construction costs. Moreover these PE funds have become a necessary for the developers who are not given loans by the banks. The banks have become highly selective in offering loans to the developers.

Earlier under the IIFL Domestic Real Estate Series 1, the firm has invested Rs.30 Cr in a Mumbai project. This is their first PERE fund. The fund was invested with Ruparel Realty who developed a project in Mumbai with this fund.

The group also has invested Rs.110 Cr with Shipra Group. This investment was used for redeveloping a housing project in Ghaziabad.

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