Taib Bank on real estate investment bandwagon

Taib Bank, a West Asian financial institution, is directing its focus on the real estate sector in India. The firm, which has been active over the past few years in India, has identified India as one of its primary investment destinations besides other emerging markets in West Asia and the Far East.

Niraj Sethi, a spokesperson for Taib Bank said: "The focus in India is mainly private equity and now real estate. In private equity the focus is on late stage companies in growth sectors, and we now prefer to co-invest alongside a large local player or fund manager rather than do direct investment. Our HNI clients have also shown increased interest in investing in the Indian market, both in listed equities and private equity."

The decision by Taib Bank to focus on the real estate sector in India is backed by the high return on investments of 10 per cent. Taib Bank joins a long list of overseas firms looking at India as an investment destination in the real estate sector.

Earlier this year, Singapore's GIC expressed interest in the sector as well. Wendy Wong, VP, research and strategic planning, GIC Real Estate, said: "As a major global real estate investor, GIC RE is interested in investing in India and is presently pursuing opportunities with other potential partners."

This interest from global players is also backed by the fact that Indian realtors are organising themselves and are building quality assets. In the recent past, there has been a flurry of deals signed between Indian and overseas realty firms. The Purvankara Group, a Bangalore-based realtor went in for a pact with Keppel of Singapore to build a large township in the city.

Another factor providing confidence to overseas investors is that global hospitality chains are contracting Indian developers for management contracts. Recently, Hilton entered into a pact with Prestige Group to set up a five-star property in the city, in one such deal.