Fire Capital plans $100 million investment in H2 in realty projects

MUMBAI: The New Delhi-based private equity player Fire Capital plans to invest around $100 million (about Rs 450 crore) during the remaining part of this fiscal, a top company official said.

"In the first half, we invested in two projects. Our plan is to invest $100 million in the second half of this financial year," Fire Capital Chief Executive Om Chaudhry said.

However, he did not disclose the amount the fund had invested in the two properties.

This real estate-focused fund also said the amount that will be invested has already been tied up from various investors.

Fire Capital, established in 2004, raised its first fund of $121 million in 2006 with an option to invest around $250 million through the co-investment commitments from investors.

The fund invests in real estate properties in tier-II and III cities with direct equity exposure in residential projects. So far, it has taken exposure in cities like Indore, Nagpur, Jaipur, and in projects located on the outskirts of Bangalore among others.

Referring to exit options, Chaudhry said the fund had exited from two projects partially in the recent past. "We have exited partially from projects in Bangalore and Indore. We are planning to exit from another project soon."

Fire Capital, which mops up money from NRIs in the US, however, doesn't need further capital for investment, he said.

Realtors are increasingly looking at PE route for investment as bank funds have dried up in recent times.