Pragnya invests in Colombo, Andhra Pradesh


india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India PropertyPragnya 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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