Triangle Real Estate India Fund, co-promoted by ICS Realty Group and South Africa-based Old Mutual Investment Group Property Investments, is looking to raise $200 million in the next few months through its second India retail-centric real estate fund. It will be a close ended fund with a tenure of eight years and will be raised in offshore markets.
“We will start the fund raising activity in the next two-three months after finalising the structure. We hope to start deploying through this second fund from early 2013,” said Deep Kantawala, Chief Financial Officer, ICS Group, advisors to Triangle Real Estate.
As a return maximisation strategy, the fund will hereon look to acquire land on its own and then enter into a partnership with a local developer as against an earlier approach of investing in the project after the land acquisition is over. It is in talks for the acquisition of land on peripheral locations of Bangalore, Mumbai, and National Capital Region.
Triangle Real Estate will target at least 25% return on its each investment from the second fund. Out of its first India-focused realty fund worth $115 million, Triangle has already invested about $68 million for a 35% stake in three retail-led projects of Provogue’s subsidiary Prozone Enterprises in Aurangabad, Nagpur and Coimbatore. Triangle gets access to development area of nearly 6.5 million sq ft through these projects.
Currently, Triangle is in advanced talks with half a dozen entities for deploying the remaining $47 million from the first fund that saw its initial closing in March 2008. “By March, we hope to conclude 2-3 deals out of the ongoing negotiations and each of this will provide us majority stake in the project,” said Kantawala. For any fresh investment, the fund has set a benchmark of 5,00,000 sq ft of developable retail space in each of the project.
