Brick Eagle Capital Advisory, a private equity fund headquartered in Hong Kong, is planning to invest around $50 million in real estate firms in India. The PE firm, which recently invested into a real estate company which has launched its first project in Chennai, is focusing on investing capital into affordable housing and providing technical expertise for companies enabling them to develop affordable housing.
The PE firm has already committed $50 million to various projects in the sector and is expected to close it within the year. Meanwhile, it is also looking at further investing into various real estate projects, said Rajesh Krishnan, MD & CEO of Brick Eagle Capital Advisory.
"So far we have committed and closing investment of $50 million. We are also in the process of shopping around for another $50 million and we are in the process of fund raising for this," said Krishnan.
Brick Eagle Capital recently invested in Sheltrex Housing Pvt Ltd, a company which focuses on developing technology enabled real estate projects. It has made a commitment of $20 million into the company of which it is presently investing $5 million. The company could use the amount committed as per the requirement of the project. However, he refused to comment on the stake acquired by the PE firm in Sheltrex.
Sheltrex is launching its first project in Chennai followed by a plan to establish a pan-India presence across eight metros. The smart houses from Sheltrex available from Rs 15 lakhs onwards will be integrated with technology and urban design. In Chennai, plans are afoot to develop around 27 acres in the initial stage and has already committed sales of around 1,800 units in the project. The first block of the project is expected to be erected by the end of this year, while the first phase would be completed in around two years' time.
"Sheltrex draws together the many strands of architecture in an urban context. We are proud to be associated with such an innovative and futuristic brand that has succeeded in developing an in-depth research and understanding of consumer needs. Our investment with Sheltrex is a testament to the same," said Krishnan. Sheltrex has plans to develop projects integrated with latest technologies offering safe and long lasting houses, said the company officials. The company has a vision to launch eight new projects spread over 2,000 acres in major cities across India. Considering the nature of the real estate segment, Brick Eagle Capital is expecting at a return multiple of 3x at the time of exit of its first project. So far it has not exited from any of its investments, he added.