Red Fort to invest $250mn in realty projects

Real estate private equity firm Red Fort Capital today said it has prepared a war-chest of $250 million (around Rs 1,100 crore) for acquiring stakes in various real estate projects in the country this year.

"This year we have earmarked to invest $250 million on various projects, of which about 70 per cent will be residential. We have already raised the money," Red Fort Capital managing director Parry Singh told PTI. It had invested a similar amount on four projects in 2009.

Talking about how much stake the company will acquire, Singh said: "We are comfortable to acquire up to 70 per cent. In most of these projects, we will invest at the project level."

He said that one of the projects in which the company will invest will be in Delhi and could be valued about Rs 280 crore. He, however, declined to share the details.

Earlier in February, Red Fort Capital had said it will invest up to $1 billion (around Rs 4,400 crore) in the next three years on various projects, including acquiring promoters' stake in some major realty developers in India.

The PE fund said it would acquire stake between 20 and 70 per cent at both special purpose vehicle level and at enterprise level.

The Cayman Island-based PE firm has already invested about Rs 700 crore in the last 18 months in five projects worth up to Rs 7,000 crore. It has an allocation of over $400 million for the Indian real estate market.