Tishman Speyer Plans To Raise 1 Billion Dollar

Property developer and fund manager Tishman Speyer plans to raise up to one billion dollar in a private fund in 8-10 months for Indian realty projects, the managing director for its India unit said.

“We still have some money left over from a previous one and we are already talking to investors for our next fund, though we haven’t started road shows yet,” Revathy Ashok told reporters on the sidelines of a capital markets conference.

Tishman has raised three hundred fifty million dollar in a private fund this year and is funding three projects in south India, she said.

High borrowing costs and a stock market slump have forced real estate firms to look at private equity for funding projects.

Private equity investing in India and China held steady in the first half of the year, the Asia Venture Capital Journal said, with India seeing a 3.2% rise to $6.8 billion, and China registering a 3% gain to $5.8 billion.

Real estate prices in India have cooled this year after a 3-year boom as a series of interest rate hikes by the Reserve Bank of India to tame soaring inflation hit consumer demand for new homes and office spaces.

New York-based private equity firm Jina Ventures plans to raise up to two hundred million dollar by end-2008 to invest mainly in manufacturing firms in India, its managing partner said.

“We are talking to investors from Switzerland, the US and Japan and should be able to wrap up the fund by end-2008,” Ron Shah at the capital markets conference.

Jina Ventures had raised fifty million dollar in 2005, which it invested in 12 Indian firms and had exited these investments, Shah said.

He said the opportunities in India remained abundant, but the current market volatility would mean foreign investors may take time to turn up in a big way.

India’s main stock index has fallen about 27% this year after a five-year bull run, hit by uncertainty in world markets and domestic factors such as double-digit inflation and moderating economic growth.

One Comment

  1. Posted September 15, 2008 at 2:50 am | Permalink

    The world is now looking at India as the nation of the future. More significantly, India is well on its way to emerging as a first-world economy in the fields of information technology (IT), biotechnology, pharmaceuticals and the automotive sector, pushing the thrust now on to the retail sector to facilitate the creation of a new surging modern India. The real estate boom in India will not only propel the economy to sustainable heights, but will also generate employment for several millions. It is strongly expected that the growing Indian economy and growing opportunities will ensure that the foundation is laid for India’s tryst with destiny and for it to be fully integrated into the world economy.For more view- realtydigest.blogspot.com

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