Tinesh Bhasin & Vijay Ganeshan

MUMBAI: Ajay Piramal’s real estate fund, Indiareit, is close to disbursing the $300 million it raised through two funds. The group has already invested about $175 million in five projects and will close both the funds in coming nine months. The fund on Wednesday signed Rs 250 crore deal with Pune based developer, Paranjape Schemes, for a 138 acre integrated township, taking a 30% stake in the project. The total project cost is valued at Rs 834 crore and both the partners intend to make between Rs 3,200 - Rs 4,000 crore selling it.

Located at Hinjewadi, Pune, the township has a saleable area of 90 lakh sq ft. The residential area will occupy about 45 lakh sq ft, an Information Technology Special Economic Zone (IT SEZ) of 30 lakh sq feet and five star hotel with a mall of about 10 lakh sq ft.

The developer has received in-principle approval and expects final approval to come within two months. “It will take six years to complete this project,” said Ramesh Jogani, CEO, Indiareit Fund Advisors.

Among the other investments, Indiareit has invested Rs 75 crore to pick up 40% stake in a commercial and residential township project done by Amsri Builders in Hyderabad.  In Mumbai, the fund has picked up 40% stake in Neptune developer’s project for 145 crore. The project, located at Kalina, will comprise of about 5 - 7 commercial buildings. It has a saleable area of 14 lakh sq ft. Last year, the Indiareit invested Rs 400 crore in Sunteck Group’s premium residential project at Bandra Kurla Complex.

Indiareit has also invested Rs 52 crore in two small projects at Bangalore and Chennai. Both the projects are developed by Srinivasa Shipping and Property Development (SSPDL), a 36.6 crore listed company. In Bangalore, the investment is done in a villa project. The fund has picked up 75% stake for Rs 28 crore. The Chennai project is a Rs 40 crore IT park in which Indiareit holds 60%.  Most the investments are either done through the $100 million domestic fund or money is co-invested with Indiareit’s $200 million offshore fund.

The group has already launched a second domestic fund with a corpus of $200 million. “The fund will be closed within six months,” said Khushru Jijina, president, Indiareit Fund Advisors.