EurIndia raises Rs 100 cr fund to invest in hotel sector
The Gibraltar-based private equity fund EurIndia has raised a Rs 100-crore for a real estate fund to invest in hotel projects in India and is planning to raise another fund soon, a senior executive said recently.
By TNN |
MUMBAI: The Gibraltar-based private equity fund EurIndia has raised a Rs 100-crore for a real estate fund to invest in hotel projects in India and is planning to raise another fund soon, a senior executive said recently.
“We’ve already invested Rs 30 crore for a five star hotel project in Goa that we propose to build in collaboration with a leading hotel company,” Vinod Ganjoor, CEO, EurIndia told ET.
“We are talking to various large hotel companies, local and international, who will operate this hotel. We’ll invest over Rs 60 crore in this hotel over a period of time,” he added.
EurIndia, a private equity fund set up in ’00, is more known in India for its early stage capital funding of companies such as BPO major AllSec Technologies and ThinkSoft Global, a software testing company. It has also participated in developing mobile services company OnMobile.
“We aren’t currently involved in any venture capital project...real estate is something that looks very exciting at the moment and we are seriously considering raising another fund for this space,” said Mr Ganjoor. EurIndia plans to invest Rs 20 crore in various other hotel projects in southern India.
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“Although we’re interested in investing in hotel projects across the country, Goa is classic tourist destination, hence our investment in a project there,” said Mr Ganjoor.The private equity fund has a diverse spread of overseas investors including institutions and high net worth individuals.
Although the fund has been associated with other sectors earlier, it is real estate that Mr Ganjoor is clearly bullish on. “It’s a sector that has tremendous scope for capital...the demand for residential, commercial and office space is so huge that this sector will see large investments in the near future,” he said. “Earlier it was IT and BPO, now I think, it would be real estate.”
Relaxed norms by the government and increased demand for homes due to better incomes has made real estate an attractive investment destination for funds.
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A recent report has estimated that by ’30, India will need up to 10m new housing units per year. Currently there is a housing shortage of 20m units.In India leading funds such as Morgan Stanley Real Estate Fund, HDFC Real Estate, Banyan Real Estate Fund, IL&FS Realty and India Reit Fund are raising money to invest specifically in real estate.
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It was recently reported that Mumbai-based Oberoi Constructions is planning to raise $100m from private equity firms.Download
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