Estate boom seeking in marriage.
India’s property boom has attracted California-based CalPERS to transfer money into credit property funds.
The world’s largest pension fund has already invested $100 million and plans to raise this investment up to a maximum of $400 million, with a return of at least 18 per cent.
As the merchandising and tourism sectors develop quite rapidly, CalPERS also wants to fund housing, business, merchandising and hospitality segments in the country. It will primarily focus on Delhi and Mumbai, with Hyderabad and Chennai being the other options. The company has already tied up with IL&FS Realty Fund for the move.
One of the reasons that impulsed such high interest is that foreign investors who could earlier buy estate items only larger than 100 acres are now allowed to buy 25 acres of real estate and more
The year 2006 has seen Warburg Pincus investing in Bangalore, Morgan Stanley investing $68 millions in Mantri Developers and the Chatterjee Group investing $450 millions.
The bullishness has also driven the prices up, and real estate is 35 per cent up since last year’s already high levels.