Credit-Suisse to Enter Indian Real Estate

Tuesday, January 23, 2007

An specific fund for the Indian realty sector from Zurich-based Credit Suisse is on the cards. Sources in the industry expect a $1 billion fund from the world’s leading financial house to be announced in the next financial year, though the bank’s officials remained tight-lipped about its plans.

Morgan Stanley and Goldman Sachs, based in the USA have already made significant moves in the real estate market in India. While Morgan Stanley established financial ties with Oberoi Constructions for Rs.675 crore last week, Goldman Sachs is preparing for an investment of $1 billion.

The investment from Credit Suisse is likely to be made in phases for the next 3-5 years, and target primarily the commercial sector. Funding of mega-sized malls, office-cum residential spaces, mid-range business hotels would be high chosen sectors for real estate investment in India.

The financial house will buy stakes in ongoing ventures in the Indian property market, or even those looking for additional funds to complete their incomplete projects. Start-up projects would not be preferred, but acquiring management of projects once they are completed would be considered. Generally, the norm for real estate investors is to sell off the share in the project once the funding is over.

Credit Suisse has been in the business of financial services, private banking, investment banking and asset management. The bank is renowned for providing expert advice, holistic solutions and innovative products to a wide range of corporate clients and high net worth individuals globally.

Photo: Mindet skyscraper under construction, Southern Harbour, Aarhus by Ciara Ní Riain, licensed under CC BY-SA 4.0, via Wikimedia Commons.