Fund Infusion into Pune Real Estate

Real estate Pune is
on a roll, with real estate mutual funds and private equity investors
investing in various projects in the city. The latest investment
comes from the HDFC Real Estate Fund which has purchased a 10%
stake in Pune’s leading real estate firm Paranjape Schemes.

Worth Rs. 75 crore, the funds would be utilised by Paranjape
for their upcoming real estate projects in Pune. The developer
has an array of projects on the anvil, for which capital would
also be raised from the market. Plans for an IPO are afoot.
One of the projects of Paranjape, an integrated township in Pune,
would be financed by GE Capital.

The deal was signed by the two
partners to the project for Rs. 250 crore recently. The GE investment
is exclusively for the project, without GE having any holding
in the company.

Paranjape Schemes is an established real estate company in
Pune and has executed 100 projects till date, including a special
project for senior citizens, offering unique advantages to elders.

The company also offers exclusive services to NRIs investing
in their residential projects in Pune – these include housekeeping
and travel services
HDFC’s real estate arm, launched in 2005 is India’s first real estate fund, and already has assets valued at Rs. 1,000 crore.

It had recently purchased stakes in Vascon Engineers, another
Pune-based real estate developer.
The HDFC Real Estate Fund managed by HDFC Venture Capital, which
in turn has SBI holding 19.5% of its stocks, invests in various
realty projects in the planning, construction and completed stage.
Both commercial and residential projects are covered in its ambit.