IndiaREIT looks at more exposure in B'lore

IndiaREIT Fund Advisors, which manages the $300-million realty fund of the Nicholas Piramal Group, is looking to increase its exposure in the fast growing real estate market of Bangalore.

The fund has a $15-million exposure in Sri Satya Sai Constructions, which is in the early stages of a Rs 330-crore residential project in Bangalore.

IndiaREIT is in talks with another two real estate firms in Bangalore for deploying its funds. The fund looks at investments with a gestation period of between two and four years.

"We will allow a maximum gestation period of seven years for any project, which is the norm," said Jasmeet Chhabra, director-Investments, IndiaREIT.

According to him, they will look at cities that are more service sector-oriented and where there is greater trickling down of wealth. "Cities like Mumbai, Pune, Bangalore among others are the focus for us," he detailed.

IndiaREIT has so far invested in developments amounting to 20 million square feet.

The year-old firm will deploy $100 million in India and invest the rest overseas. Some 60 per cent of its investments will go into residential properties.

"We will invest only in end-user properties," said Chhabra. This is aimed at discouraging speculation and ensuring transparency with regard to projects.