Morgan Stanley pumps $68 mn into Mantri

Morgan Stanley Real Estate, the global financial powerhouse, has announced an investment of $68 million (around Rs 300 crore) in Mantri Developers, a Bangalore-based property developers. Mantri, with this, will be able to expand its business to other south Indian cities.

The company is keen on expanding into Hyderabad, Kochi and Chennai, said Sushil Mantri, managing director of Mantri Developers. "We have already acquired a property in Hyderabad and two others are being negotiated. In Kochi and Chennai, we need to explore the potential," he added.

With the vital investment coming the Mantri way, the company plans to execute its six ongoing projects totalling six million square feet of construction in Bangalore.

According to Sushil Mantri, managing director, Mantri Developers, "We are excited about partnering Morgan Stanley to grow our residential business. We are looking forward to gaining from their expertise in project management and positioning the projects on the global platform."

"The partnership will be integral to our ability in creating value by expanding our presence in Bangalore and other key markets. The relationship is also an important step in diversifying our business," he added.

In a release, Sonny Kalsi, managing director and global head of Morgan Stanley Real Estate Investing said,"We are pleased to be announcing our first real estate investment in India."

"We believe India presents an extremely compelling investment story and expect to be a long-term investor in the real estate sector. The residential market is attractive because of the rapid urbanisation, the availability of housing finance and the strong growth of the consumer segment," he added.

According to Zain Fancy, executive director and head of Morgan Stanley Real Estate in Asia-Pacific: "Mantri Developers represents an opportunity to partner an outstanding management team and in an organisation with strong development capabilities and a recognised brand name to capitalise on the opportunity. We look forward to working with the Mantri Developers management and in growing the Mantri Developers franchise."