US-based Hines to invest $250 million in Indian housing market

US-based realty firm Hines today announced a tie-up with a global fund to invest USD 250 million (over Rs 1,500 crore) in various housing projects in India with an aim to tap the huge demand for mid-income homes.
Hines, which entered into the Indian real estate market in 2006, has completed construction of 3 commercial buildings, with 1.5 million sq ft of area, in Gurgaon.
Announcing its foray into the housing segment, Hines Country Head & Senior Managing Director Yash Gupta said: "We have formed a joint venture with an international finance company to invest in residential development in India with an initial capitalisation of USD 250 million".

He declined to name the global fund as well as the stakes of the two partners in the JV firm -- Hines India Residential. The JV would invest in form of an equity in the housing projects in Delhi-NCR, Mumbai, Bangalore and Pune.
"We will partner with local developers and we are in discussion with major builders. We are looking at doing 3-5 projects over the next 2-3 years. We are targeting mid-income housing projects where there is maximum demand," he said.
The first housing project is likely to be announced in January-March quarter and investment in a single project could be in a range of Rs 300-500 crore, Gupta said.

"We can enter into any project at any stage but we would prefer to be in project from the very beginning," he said, adding that the company would ensure that project is being executed in a professional manner.

The JV firm would leverage local partners' Indian experience and Hines global know-how in designing and developing residential products.
Asked why the company is not developing housing projects on its own, Gupta said the firm will explore the possibility in future.
On leasing status of its commercial projects, he said the company has completed a commercial building in joint venture with India's largest realty firm DLF in Gurgaon. Out of total one million sq ft area, about half has been leased out.

Hines is also developing another commercial project 'Skyview Corporate Park' in phases on a 21-acre site owned by Shyam Telecom.
In the first phase, Hines has completed 0.5 million sq ft, which is almost leased out. Another 1.5 million sq ft would come up in phases in this project, Gupta said.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. Currently, Hines manages 391 properties totalling 161 million sq ft, which includes 89.1 million sq ft for third parties.
With offices in 115 cities in 18 countries, and controlled assets valued at approximately USD 28.2 billion, Hines is one of the largest real estate organisations in the world.