Yatra Capital invests in 2 JVs

Yatra Capital Limited, the Euronext, Amsterdam quoted company, has invested Euro 28.01 million in two joint venture projects in Bangalore.

Sir Nigel Broomfield, chairman of Yatra Capital Limited in a release said "This is the 10th and 11th investment of the company in the Indian real estate. We have committed Euro 17.86 million in Palladium Constructions for a 30 per cent stake in a mixed use development and Euro 10.15 million in Platinum Hospitality Services for a 30 per cent stake in a hospitality development."

The total size of both the developments are around 3.5 million square feet and are to come up at Yeshwanthpur in northern Bangalore. Construction on both properties is expected to begin in the last quarter of 2008 with the entire project expected to be completed in five years.

The company's other investments include joint venture development with The Phoenix Mills in 2007 where a strategic investment of Euro 3.73 million was made for 0.47 per cent equity stake. Yatra has also previously invested in two projects with Phoenix: a mixed use and a hospitality development.

For investing in Indian real estate, the company in December 2006, raised Euro 100 million and a successful follow on fund raising of Euro 120 million on October 19, 2007.

This investment into Bangalore's real estate sector comes at a juncture when established local developers like Puravankara, Prestige and Mantri Developers are set to close deals worth around Rs 1,000 crore each through the private equity route.

During the past year, the Bangalore real estate players mopped up close to $2 billion from global financial institutions such as JP Morgan, Goldman Sachs, Morgan Stanley and Deutsche Group.

The Indian financial institutions such as ICICI Ventures, Red Fort Capital, Kotak Realty Fund also have been closing realty deals in the range of $100-200 million.