Anand Jain-controlled Jai Corporation, an infrastructure company, has raised commitments worth five thousand six hundred eighty six crore rupeees through its venture capital management company’s two funds.
Urban Infrastructure Venture Capital, the company’s venture capital company, is the Indian Advisor to UIREF, a Mauritius-based offshore fund that invests in Indian real estate.
Urban Infrastructure Real Estate Fund, the offshore fund that was launched in May previous year, has raised commitments of around two thousand four hundred crore rupees till now. With an additional commitment of one thousand sixty five crore rupees in May, the second fund the Urban Infrastructure Opportunities Fund has raised its corpus fund to three thousand two hundred eighty six crore rupees, the company said in its yearly report lately.
Both funds invest in special purpose vehicles that are floated for real estate projects in India. Jai Corp plans to grow the SPVs into large real estate development companies by providing funding for various projects. The investment focus, according to the report, is on developing big integrated townships and multi-use developments.
The opportunities fund, which was launched in May 2006, raised two thousand two hundred twenty one crore rupees worth commitments at the beginning itself. After two years, it raised further commitments of one thousand sixty five crore rupees and 20% of it has been drawn down for seven years.
Anand Jain has been closely associated with Reliance Industries for a long time. He attended the Hill Grange High School in Mumbai, where Mukesh Ambani was his classmate. Jain is presently in charge of RIL’s SEZ foray. The fund’s target is in line with the plans of its core investor, Reliance Industries, said sources.
Jai Corp is a stakeholder in entities developing two SEZs - Mumbai SEZ and Navi Mumbai SEZ and the Rewas Port in Maharashtra.
It is planning mega play in power generation, transmission and distribution, water supply, gas distribution, engineering, procurement and construction and IT and telecom. The company makes cold-rolled coils, galvanised coils and corrugated sheets at its Nanded unit in Maharashtra.
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With the property market going through a slump, private equity investors are shifting their investments to companies engaged in real estate ancillary businesses, where returns are perceived as fairly safe. “Real estate ancillary businesses are attractive,” said Mr. Sourav Goswami, the Managing Director of a leading private real estate investment company, Walton Street Capital. “We continue to look at opportunities in this space, but the main challenge is the capability of the managements to carry out expansions. Such companies face shortage of talent and the stretch level is very thin.” There are at least six private equity investors who are learnt to be in talks with Pune-based Universal Construction Machinery and Equipment. This company manufactures and sells construction equipment, and had a net profit of Rs 7 crore on sales of Rs 130 crore in 2007-08. Mumbai-based Sankapan Group also revealed that three private equity investors are interested in investing in its four subsidiaries.For more view- realtydigest.blogspot.com