Jones LaSalle raises funds for residential projects
Jones Lang LaSalle, a Global real estate services firm, raised Rs 161 crore. The fund is focused on residential sector in India — Residential Opportunities Fund I – and is a six-year, close-ended private equity fund. It will invest Rs. 25-30 crore and target 25-30% returns, informed a senior executive. The fund will be will be operated by JLL India’s investment management business, Segregated Funds Group (SFG). SFG is a new investment vehicle launched to invest in property market of India which has been hit by global financial crisis and country’s slow economic growth.
Mridul Upreti, chief executive of JLL Segregated Funds Group added that focus of the fund is to seek value-added returns from inherently lower risk strategies. It will invest in will invest in small residential projects in prominent locations across seven cities in India including Delhi-National Capital Region, Mumbai Metropolitan Region, Bangalore, Chennai, Kolkata, Hyderabad and Pune.
Placement agent for the fund was Axis Bank.
According to research firm Venture Intelligence, six real estate-focused funds raised about $388 million (Rs. 2,418.4 crore) in 2013 while eight such funds raised about $1.29 billion (Rs. 7,978.2 crore) in 2012.
Source: The Economic Times
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