Pragnya Advisors, the private equity (PE) fund focussed on real estate, has entered into two deals in Colombo and Rajahmundry, Andhra Pradesh for an investment of $100 million second fund.
In Colombo, it has invested an undisclosed sum in the residential portion of a premium mixed-use project.
In Rajahmundry, Pragnya has invested about $5 million (Rs. 25 crore) in a 50-acre integrated township.
The PE fund, which invests in foreign direct investment-compliant projects in India and Sri Lanka, is investing $30 million in three other projects in Pune, Chennai and Hyderabad.
Pragnya is one of a few realty funds that cater to small capital requirements that larger funds don’t address.
With the Reserve Bank of India tightening norms for banks, large and mid-sized developers are relying on PE funds and non-banking financial firms for capital to buy land, fund construction or repay debt.
Pragnya is still raising money for its second fund.
Earlier this year, Pragnya contributed from this fund a small portion of a $5 million investment in a mixed-use project in Whitefield, a Bangalore suburb, for which it has formed a joint venture with developer Habitat Ventures Ltd.
Pragnya, besides functioning as an investor, is also a co-developer in the projects it funds.
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