LICHF arm plans Rs 750 cr realty fund

MUMBAI: LIC Housing Finance Asset Management Company, a unit of LIC Housing Finance, which figured in the bribes-for-loan scam, is planning a Rs 750-crore real estate fund and is looking for people to manage it.

The company is considering senior executives from Mumbai-based Edelweiss Securities and realtor Tishman Speyers for top positions and candidates from Trikona and realty fund IndiaREIT for the midmanagement level, according to people involved in the recruiting process.

LICHFL Asset Management will raise Rs 500 crore with a greenshoe option of Rs 250 crore through co-sponsors LIC and LIC Housing Finance, who will put in about 20% of the corpus.

"The aim is to tap middle income housing opportunities," LICHFL Asset Management CEO Arun Goel told ET. "Recruitment is an ongoing process and we will build on the team once the fund is closed and we get into investing."

Goel said his company had factored in the 2008 crash and the more recent bribes-forloan scam while deciding to launch the fund. He said the fund would target a 22% return.