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Real investment fund allowed |
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Saturday, 09 September 2006 |
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NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) has cleared an investment by HDFC's global real estate fund to invest up to Rs. 3,240 crore in the country. The Mauritius-registered India Offshore Real Estate Investments (IOREI), which is sponsored by HDFC, has been allowed to invest this amount, raised overseas, in units issued by HDFC's International Real Estate Fund (IREF).
The decision to allow the global investments comes at a time when the real estate sector is facing a boom and property prices in most major metros are at an all-time high. As a result, global real estate players have also been showing considerable interest in the Indian market. The international scheme of the fund would be managed either by HDFC Venture Capital or a different entity from within the HDFC group. The spokesperson said investments in the HDFC property fund would be subject to the existing FDI policy in respect of the real estate sector, including not allowing repatriation of original investment before three years from completion of original capitalisation. HDFC Property Fund is a venture capital fund, whose investment manager is HDFC Venture Capital and the trustee company is HDFC Ventures Trustee Company. The fund was set up in 2005 and has launched two schemes over the last one year. These include the HDFC India Real Estate Fund and the HDFC IT Corridor Fund.
Edwina Baniqued
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