(For more retail coverage, click GlobeSt.com/RETAIL and to read more on the multifamily market, click here.)
MUMBAI, INDIA-SUN-Apollo Ventures Limited recently held the final closing for SUN-Apollo India Real Estate Fund LLC, its latest fund, which will pursue real estate development and investment opportunities in India. The fund attracted $630 million of equity from institutional investors based in the US, Europe and Middle East, as well as multilateral agencies and high-net-worth individuals.
SUN-Apollo Ventures Limited is a joint venture of Apollo Real Estate Advisors and Sun Group, an India-based business and investment group owned by the Khemka family. They formed the fund to take advantage of the dramatic growth in India's economy, which is said to be generating supply-busting demand for all forms of real estate, from offices and shopping centers to residential developments and hotels.
William Benjamin, the London-based managing director of Apollo's European operations, tells GlobeSt.com the fund's equity will be invested over a three- to four year period using 65% leverage and assets will be held in the fund for between three and six years. The projected IRR for investors is in excess of 20% and there are no specific minimums and maximums for how much equity should be invested in certain types of real estate.
The advisory team for the fund's investments is based in Mumbai and led by managing director Chetan Davé, formerly chief investment officer and head of development for Transwestern Development in Houston. The fund's initial investment is a 58-acre site in Chennai upon which a five-million-sf, mixed-use development to include three million sf of office space catering to the IT sector, one million sf of retail and one million sf of residential. The fund is a 50/50 partner in the estimated $400-million project with Sriram Properties.
Earlier this week, Beekman Helix India Partners LLC, a JV of Beekman Advisors and Helix Financial Group said it plans to deploy between $200 million to $500 million into the Indian real estate market this year. Formed in mid-2006 and headquartered in Gurgaon, India, BHI has so far placed $52 million.
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