BANGALORE: Jones Lang LaSalle’s Segregated Funds Group has achieved the first close of its maiden real estate fund in India. The residential opportunities fund – I, had raised Rs 101 crore commitments in its first closing, in line with the Rs 300 cr total fund raising target.
“The current times provide an attractive opportunity to generate higher risk adjusted returns for investors by securing investment opportunities that have shorter development cycles and good locational attributes. We believe the depth of our experience, analysis and relationships in the market, positions us to capitalize on this opportunity,” says Mridul Upreti, CEO, segregated funds group.
The fund will invest in the residential sector in prominent location across seven cities in India, namely Delhi NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, Kolkata, Hyderabad and Pune. “The fund intends to mirror the investment themes of direct investors in residential real estate,” says Upreti.
Launched in early 2012, the segregated funds group is Jones Lang LaSalle’s investment management business in India, offering high net worth investors and institutions, long term value added returns through high quality proprietary real estate investment opportunities.
“The Segregated Funds Group is a new entity setup by the global consultancy firm to raise a series of funds with dedicated investment themes for the Indian Real Estate Market. Scheme ROF -I was amongst the first real estate funds to be registered with SEBI under the new Alternate Investment Funds (AIF) regulations,” Jones Lang LaSalle said in a statement.
Axis BankBSE -1.56 % Private Limited acted as the placement agent for Scheme ROF – I.
Jones Lang LaSalle, global real estate property consultancy firm that offer services like leasing, buying office space or investing in the Indian real estate space. Globally, LaSalle Investment Management, an independent subsidiary of Jones Lang LaSalle manages $46.7 billion (as of Q2 2012) of private and public property equity investments, which invest only in real estate. Private equity investors have been cautious and are increasingly looking at exiting their investment in the country, invested during 2007-2008. According to management consulting firm, Bain & Company’s latest report on private equity in India, real estate investments have halved, from $3.4 billion in 2011 to $1.8 billion in 2012.