Which city are you from? Please select city here.

Rs , sq ft

Removed from Shortlist

My Shortlist ()
Keep track of your shortlisted properties here. Shortlist a property to get started.

Pragnya to invest in Bangalore

No Comments Sub Category:Bangalore,Cities,Realty News Posted On: Mar 05, 2013

Pragnya Advisors to invest in residential projectsPragnya Advisors Pvt. Ltd has invested around Rs 27.5 crore in Bangalore in a Habitat Ventures project and another $5 million in an office space development in Colombo, Srilanka.

Pragnya has two real estate-focused funds. The first fund of $40 million was distributed across seven transactions and money from the $50-million second fund is being invested.

Earlier, Pragnya invested $5 million in a Habitat Project in Bangalore’s Whitefield  area and Habitat Ventures is the second and largest investment in Bangalore by the same which was set up in 2004. The Habitat project is at Bannerghatta Road and the investment amount may go up to $7 million if at all additional land is acquired for it, said Pragnya chief executive T. Srinagesh.

A higher official said that they have acquired land for the Bannerghatta project and the approval is in process. Pragnya often invests through joint development agreement with the land owner and the developeing partner at the land aggregation or acquisition stage.

Previously, Pragnya invested in a residential development in Colombo but opted to put its money in an office project this time. As the supply of the lease rental generating office properties is limited there, so it is better to invest in such properties. Usually real estate- centric private equity funds invest bigger amounts like Rs 80 to 100 crore in projects. So the smaller developers are seeking funds from tap non-banking financial companies for money. Those small and mid sized developers are in great need for capital for various reasons.

Pragnya invests in residential projects. Last year, it invested Rs.118 crore in a residential project in Chennai that is being developed by VGN Developers Pvt. Ltd. The company is planning to use the remaining capital of around $ 25 million from its second fund in 3-4 projects, mainly in residential project in southern part of India. Pragnya is going to sell most of its investments this year.

Click here for related forum discussion

Related real Estate News:

Private equity fund for Indian Real Estate

Realty focused Private Equity firms are raising funds

Leave a Reply



CommonFloor Property Search Mobile App now available on Android, iOS and Windows!