US-based investor and developer Portman Holdings has deployed $6 billion (Rs 32,860 crore today) in real estate and developed over 50 million square feet all over the world. After investing in two projects of Pune-based Kolte Patil Developers, currently, it is looking to invest in Indian markets. Ambrish Baisiwala, chief executive officer of Portman Holdings, talks to Raghavendra Kamath about the firm’s plans and strategy in India.
What kind of asset classes and which are the cities you are looking at to invest in India?
We are looking at residential, non-IT (information technology) office and hospitality properties. In residential, we are looking at both stand-alone and mixed use properties. Till now, we have not seen any opportunity in office properties. We are tracking a lot of cities such as NCR (national capital region), Ahmedabad, Mumbai, Chennai and others. We would like to focus on them. But the number may grow or change with the times.
Typically, we are looking at investing in projects of one million sq ft or more. We can look at smaller projects in cities such as Mumbai, where space is constrained. We can also invest in hotel projects if there is a good opportunity. We can do that with our existing partner Kolte Patil also.
How much are you planning to invest in Indian properties in the next two years?
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We cannot share any investment numbers. But we like the Indian market and we expect to be here for a long term. We are looking to invest in other projects of Kolte Patil Developers and other developers.
How much capital are you planning to raise for the Indian market?
Portman Holdings plans to continue investing its own capital and seeks to raise up to $300 million of third party capital to invest in Indian real estate.
What is your take on the Indian property market?
Our view is that all markets go through various cycles. Some cities may have over supply, some others may have under supply. Rarely, there is a market where demand and supply are in perfect sync. We would like to match our products with what buyers are looking for.
What is the status on your first investment?
Portman holds equal stake in two of Kolte Patil’s projects in Pune, which are valued at $160 million. In the first project, over 50% is sold and the second is ready for handing over.
