Duke India to pump in $300 million in realty

Private equity investing firm Duke IndiaCo plans to invest $300 million in the Indian real estate sector in next three years.

The investment will be carried out through Duke IndiaCo Property Fund which will mobilise money from high net worth individuals in the UK, the US and the Middle East.

Gopal Patwardhan, managing partner of Duke Equity Partners, the sponsors of Duke IndiaCo Group, said that the Fund would pick up housing projects with limited activity in infrastructure and commercial property projects.

"We will invest over 50 per cent in housing projects in the middle income buyer category," Patwardhan said. From 25 to 35 per cent will be kept aside for commercial or industrial projects and the rest in the retail space, he added.

Patwardhan clarified that the investment in the retail segment would be selective, mainly related to hospitality and theme malls.

He said the investment would cover an estimated 60 million square feet of real estate in long-term.

"We will invest in projects that comprise housing units costing Rs 15-20 lakh," Patwardhan said, adding the Fund will concentrate on Tier II and Tier III cities . Each investment will be in the range of $15-20 million, he said.

Patwardhan said the Fund will also mobilise money from institutional investors, chiefly pension funds abroad.

The Fund may even list over a period of time, he explained, making clear that there will be no payout for the first five years or so from the Fund which will be in the growth category.