JLL India's PE arm makes maiden real estate investment

NEW DELHI: Segregated Funds Group, the real estate-focused risk capital arm of Jones Lang LaSalle (JLL) India, has invested Rs. 24 crore in a residential project in Bangalore, the first such transaction made by the global real estate services firm's India unit from its maiden private equity fund.

The investment has been made in a housing project situated near Marathahalli in Bangalore, with real estate developer Assetz Property Group also participating in the transaction. Earlier this month, JLL India's private equity unit had made the final close of its first fund - Residential Opportunities Fund I - at Rs. 161 crore, a development first reported by ET.

"We are happy to partner with Assetz Property Group and believe in their institutional approach to developing, managing and delivering real estate. Furthermore, we see a good potential for residential projects located in prominent micro markets in Bangalore," said Mridul Upreti, chief executive of SFG.

The fund, which has been registered with markets regulator SEBI as a Category-II Alternative Investment Fund, has a mandate of investing in small residential projects in prominent locations across seven cities in India including Delhi-National Capital Region, Mumbai Metropolitan Region, Bangalore, Chennai, Kolkata, Hyderabad and Pune.

""The fund's focused investment approach is based on seeking value-added returns from inherently lower risk strategies. A significant portion of the capital has been raised from a combination of high net worth individuals, institutional investors and family offices,"" Upreti had told ETin an earlier conversation.

Launched in 2012, SFG is a new investment vehicle launched by JLL India to invest in the country's beleaguered property market, which has been hit hard by a combination of the country's slowing economic growth and the lasting effects of the global financial crisis.

The six-year, close-ended real estate fund will invest Rs. 25 crore to Rs. 30 crore, while targeting returns on investments ranging between 25% and 30%.