Lloyds, Brooke Hillier To Float Property Fund
Lloyds Brooke Hillier Parker Property Services plans to float a property fund for overseas investors who want to dabble in the realty markets in India. This is first fund of its kind in India.
Lloyds Housing Finance Ltd (LHFL), an affiliate of Lloyds Finance, has formed a joint venture with Brooke Hillier Parker (BHP) of HongKong to offer a range of real estate related consultancy services. The new company, called Lloyds Brooke Hillier Parker Property Services Private Ltd, has been set up with an authorised share capital of Rs 100 lakh with Lloyds Housing Finance subscribing to 51 per cent equity holding and the balance 49 per cent being held by the foreign partner.
Through the fund, foreign investors can dabble in the real estate markets. Currently the real estate markets are in a bearish phase. But experts feel the prices will soon bottom out and rise in the next 18 months or so. Hence, it would be the right time for investors to enter it is felt.
Investors unaware of the vagaries of the Indian realty markets will be able to invest through the funds, which will spread out risks. It will function just like a mutual fund for the stock markets. The size of the fund has not yet been finalised.
However, it remains to be seen if investors will be interest in speculating in the realty markets, as profits from real estate cannot be repatriated.
BHP has a major regional presence in South East Asia and also operates in the Middle East, Europe and Australia.
The new company, with its base in Mumbai, has already completed projects for Nike and the Bangalore Technology Park. It is also finalising deals with around 10 more clients.
The joint venture is expected to provide interested parties with the relevant information and assist them in tying-up with the right kind of project in the country as well as adopting the latest technology. The venture will earn direct foreign exchange for the country for services provided to multinationals and prospective foreign clients. It will initially target multinationals and look for property development in the hotel industry.
Comparing the Indian property scenario with that overseas, Nicholas Brooke, senior partner, BHP, said, while the Indian property laws were onerous, they were definite and not changing like that in other emerging economies.
The joint venture with its presence in Mumbai, Delhi, Bangalore, and Pune will offer services such as identification and evaluation of development opportunities, research, valuation, marketing of commercial developments such as industrial parks, hotels, resorts, shopping malls, management of property and investment advisory services on sales and acquisition of investment properties.