ICICI Venture Funds Management, the private equity arm of India’s largest private sector bank ICICI Bank, plans to raise Rs.7.50 billion to Rs.10 billion ($167 million to $223 million) for its second real estate fund, the India Advantage Fund Two.
The fund will raise capital from domestic banks and high-networth individuals and focus primarily on residential real-estate projects of mid-sized developers in top-tier cities such as Delhi-National Capital Region, Mumbai, Pune, Bangalore and Chennai.
“It would take at least six to nine months to raise the capital,” said Sanjeev Dasgupta, president (real estate) of the company.
ICICI Venture had raised Rs.24.7 billion ($550 million) earlier for its first realty fund, in 2005. This focused on residential, commercial and mixed land-use projects.
With a number of India-dedicated real estate funds getting launched recently, private equity has become a favored route among property developers to get funds. ICICI Venture realty funds are among the biggest domestic funds in this space.
“Apart from prime markets such as Mumbai and Delhi, private equity funds have also opted to invest in large residential projects in tier-two cities,” said Anuj Puri, chairman and country head of property consultants Jone Lang LaSalle India.
