HDFC PMS looks at exiting real estate investments

HDFC Portfolio Management Services (PMS), a unit of HDFC Mutual Fund, is exploring the possibility of exiting some of its real estate investments before it launches its next real estate fund, said an investment banker in the know of things.

The exits are to the tune of Rs 800 crore-Rs 1,000 crore and range between Rs 100 crore and Rs 250 crore per investment, the banker, said.

“Since they are launching the new fund, they are looking at returning the money and launch a new fund,” he said. The PMS has already applied with the equity markets regulator Securities and Exchange Board of India for a real estate fund under the alternative investment fund (AIF) guidelines.

When contacted, HDFC Mutual Fund spokesperson clarified there was no plan of exiting investments worth Rs 1,000 crore at this stage. “Furthe, we would like to add that various investments are at different stages of the life cycle and we keep evaluating exits as part of our investment process,” the spokesperson said.

On its proposed real estate fund, the spokesperson said: “We have plans to launch a real estate fund under the AIF regulations. It is early to give a date to this but will keep you abreast of developments as and when we are ready,” the spokesperson added.

Recently, HDFC PMS exited the housing project of Mumbai-based Runwal Group by selling 50 per cent in the project for Rs 250 crore.