Solitaire
Cap to raise Rs
300 cr under first
scheme
Moumita Bakshi
Chatterjee
New
Delhi , October
07, 2005. The
Hindu Business
Line
REAL estate venture
capital fund Solitaire
Capital India
said on Thursday
that it would
invest in 8-10
projects across
the country in
the next six to
12 months under
its first `scheme'
with a corpus
of Rs 300 crore.
The projects will
span residential
townships, commercial
complexes and
IT parks. "The
corpus of the
scheme is estimated
at Rs 300 crore,
which includes
a greenshoe option
of Rs 80 crore.
While Solitaire
Capital and its
promoters have
committed to 10
per cent of the
estimated fund
size, the balance
would be raised
from domestic
Institutions,
non-resident Indians
(NRIs), persons
of Indian origin
(PIOs), high networth
Individuals and
domestic corporates,"
Mr Sanjiv Ahuja,
CEO of Solitaire
Capital Advisors
Pvt Ltd, which
administers the
fund, told Business
Line.
He said the first
financial closure
for the scheme
to raise about
Rs 150 crore was
likely to be completed
by November-end.
The second closure
could take place
two months after
the closing of
the first phase.
"We will
be evaluating
projects, including
residential townships,
commercial complexes,
IT parks and shopping
malls. We will
invest only in
real estate projects
and not venture
into hardcore
infrastructure
projects,"
he said, adding
that the extent
of participation
would depend on
the type of project.
"In some
projects, a stake
of 25 per cent
and above is preferable.
But we could be
satisfied with
a 10 per cent
stake in a large
project with blue
chip partners.
The decision will
be taken on a
deal-to-deal basis,"
he said. The real
estate fund, which
has been approved
by the Securities
and Exchange Board
of India (SEBI),
has a life of
six years and
the company will
eye an internal
rate of return
of 30 per cent
on a gross (pre-tax)
basis.
Asked about the
recent appreciation
in real estate
prices in the
country, he said,
"It is true
that the prices
have run up in
metros such as
Delhi, Mumbai
and Bangalore.
One has to stay
away from over-hyped
markets. We will
be looking for
innovative deals
in category B
towns with a population
of one million
and above. We
will be keen on
places like Ludhiana,
Kochi and Jaipur.
We may also look
at the National
Capital Region,
but that is not
a high priority
market for us."
In fact, Solitaire
is already in
the investment
mode. "We
are in the process
of signing two
township projects
where we will
go for minority
participation,"
he added.
"Unlike other
funds, we want
to tap NRIs and
PIOs in the South
East Asian region
and we will also
use the experience
gained from these
markets."
He pointed out
that the environment
is conducive for
new real estate
funds in India,
as the Government
had allowed venture
capital funds
to invest in realty
last year, and
foreign direct
investment was
opened up in the
sector earlier
this year.
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http://www.thehindubusinessline.com/2005/10/07/stories/2005100702691500.htm
