3i accesses Indian real estate market with a $40m investment in INDIAREIT Offshore Fund

02 Aug 2006

3i, Europe's leading private equity and venture capital company, has committed to a US$40 million investment in the Offshore Fund being launched by INDIAREIT - the India focused US$160 million real estate venture capital fund promoted by Ajay Piramal, one of India's leading businessmen and Chairman of Piramal Enterprises. The Fund will be managed by Ramesh Jogani, CEO of INDIAREIT Fund Advisors Private Limited.

The Offshore Fund will invest in projects governed by the Foreign Direct Investment (FDI) guidelines for Real Estate in India. INDIAREIT's investment objective remains to invest in specific real estate projects based on clearly identified sectoral gaps across residential, commercial and retail segments in South and West India."

The Indian real estate market is already a US$15bn industry and growing at 25-30% per annum. Over US$5bn from funds is set to be invested in the Indian real estate market. India's projected GDP growth, coupled with the government's initiatives to support this sector, will drive the sustained increase in demand for Indian real estate. 

3i's Mark Thornton, Managing Director and Co-head 3i Asia, will hold a seat on the Investment Committee of the Fund.

Chris Rowlands, 3i's Head of Group Markets, said: "The Indian real estate market is still young but very promising. INDIAREIT presents an attractive means for 3i to work with an experienced and reputable partner and gain access to the market at an early stage."

According to Mr. Ajay Piramal, Chairman of Piramal Enterprises: "This will be a symbiotic relationship where INDIAREIT will benefit from 3i's proprietary systems and procedures and its vast international exposure in the venture capital business whereas 3i will be able to understand and appreciate the Indian realty market through the strong INDIAREIT management spearheaded by Mr. Ramesh Jogani."

Notes to editors

About 3i
3i is a world leader in private equity and venture capital.  We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business.  These underpin the value that we deliver to our portfolio and to our shareholders.

About the INDIAREIT FUND
The INDIAREIT Fund is a boutique real estate venture capital fund, promoted by Piramal Enterprises. The fund is registered under the SEBI (venture Capital Funds) Regulations and has INDIAREIT Fund Advisors Pvt. Ltd., as its investment advisors. INDIAREIT will invest at enterprise levels of primarily real estate development companies.

About Piramal Enterprise
Piramal Enterprises is a diversified INR 3500 crore Group with global footprints. The Group companies like Nicholas Piramal India Ltd. & Gujarat Glass Ltd., are market leaders in their respective segments.