The Hindu : Business : HDFC real estate fund allowed investment

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Friday, Sep 08, 2006

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Business

HDFC real estate fund allowed investment

Special Correspondent

Gets CCEA nod to raise $30 million from the domestic market

NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) has cleared an investment by HDFC's global real estate fund to invest up to Rs. 3,240 crore in the country. The Mauritius-registered India Offshore Real Estate Investments (IOREI), which is sponsored by HDFC, has been allowed to invest this amount, raised overseas, in units issued by HDFC's International Real Estate Fund (IREF).

An official spokesperson told newspersons that IREF would in turn invest in Indian companies.

The decision to allow the global investments comes at a time when the real estate sector is facing a boom and property prices in most major metros are at an all-time high. As a result, global real estate players have also been showing considerable interest in the Indian market.

The CCEA also allowed the HDFC-sponsored fund to raise $30 million (nearly Rs. 135 crore) from the domestic market.

The `Series A' units that India Offshore Real Estate Investments would subscribe to will have a face value of Rs. 1,000 each.

The international scheme of the fund would be managed either by HDFC Venture Capital or a different entity from within the HDFC group.

The spokesperson said investments in the HDFC property fund would be subject to the existing FDI policy in respect of the real estate sector, including not allowing repatriation of original investment before three years from completion of original capitalisation.

HDFC Property Fund is a venture capital fund, whose investment manager is HDFC Venture Capital and the trustee company is HDFC Ventures Trustee Company.

The fund was set up in 2005 and has launched two schemes over the last one year. These include the HDFC India Real Estate Fund and the HDFC IT Corridor Fund.

PTI reports:

To invest in UWB

MUMBAI: Housing Development Finance Corporation has informed the BSE that the company jointly with any one or more of its subsidiary or associate companies proposes to invest an amount of up to Rs. 70 crore in the aggregate by way of equity in United Western Bank.

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