Bangalore-based property firm Century Real Estate Holdings is reportedly setting up a venture capital fund with a corpus of around Rs.100 crore.
Century will initially raise money from family and friends and later tap the larger investor community, according to the sources close to the development.
The fund will invest in pre-development of land owned by Century across south India, where the real estate company will have control over development rights.
Century declined to comment on the proposed fund. Further details on the fund were not immediately available.
Last year, the developer had raised Rs.370 crore in three tranches through non-convertible debentures from Kotak Realty Fund and JM Financial, a non-banking finance company. The company had also raised around $200-million from Goldman Sachs during the slowdown of 2008-09.
Century Group will be the latest real estate company to set up a fund. Construction giant Shapoorji Pallonji had floated a $500 million private equity fund, mainly focused on real estate. The company had managed to raise $250 million to invest in development of projects for the group and also for third party projects.
Other real estate companies, like Hubtown, earlier known as Ackruti City, and Kolte Patil had tied up with foreign partners to set up their own funds but have been unsuccessful in raising money. Hubtown had roped in Pacifica Fund and Beekman Helix as partners for its maiden Rs.500-crore real estate venture fund and Kolte Patil had tied up with Portman Holdings to raise a $500-million fund.
