JLL's PE firm to invest Rs 100 cr in residential projects

The company is also planning to raise the second fund of around Rs 400 cr from next year

The Segregated Funds Group (SFG), promoted by real estate consulting firm JLL India is contemplating investing Rs 100 crore this year from its first fund of Rs 200 crore.

The company, which focuses on investing in small real estate projects, is also looking at raising a second fund of Rs 400 crore starting from next year.

SFG is currently focused on investing in realty projects with a ticket size of Rs 30 crore in growing markets like Chennai, Bangalore, Delhi and Pune, said its chief executive officer Mridul Upreti

“We had closed the first fund last year and would be investing Rs 100 crore from it this year. The next fund would also be similarly in the residential space and it would be around Rs 400 crore. We will be finalising the details of this by the end of the year,” he said.

The company envisages managing a series of real estate funds with distinct investment themes, offering investors private equity style returns. It would also look at the opportunities emerging with the Real Estate Investment Trust (REIT) and would enter into the office space business for investments in future.

“The real estate sector is seeing a growth with the demand picking up and there is opportunity for growth in these cities,” he said. While the demand is picking up, the level of unsold inventories are high in most of the cities, which would keep the prices from going high at present.

SFG was launched in 2012 by Jones Lang LaSalle.