Global giantJP Morgan Asset Management has invested Rs 200 crore in the Assetz Property Group,which is headquartered in Singapore. Assetzdevelops residential and commercial properties in southern India. With this investment,Assetz Property Group has raised about $250 million for its residential projects so far. The deal is said to be signed within this week. Sources suggested that this specific investment is to help the developer to buy and develop a 20-acre land parcel in north Bengaluru to build a villa project.
Akshay Dewani, the director of Assetz Property Group stated to the Economic Times,”The money will be used to build an 18.5-acre residential project in north Bangalore. The capital will be given in the form of equity by JP Morgan.” He added that,”We will be raising capital for logistics vertical first and plan to have a 10 million sq ft portfolio over the next four years.We plan to have a multi-development platform as we have a good fundraising setup.” Currently, Assetz Property Group develops residential assets mainly in Bengaluru, with plans to set up logistics and warehouse parks on the outskirts of Delhi, Mumbai, Chennai, Bengaluru and Nagpur in the near future.
In the past, AssetzProperty Group is reported to have raised around $116 million from private equity (PE) and venture capital firm Equis Funds Group Pte Ltd for its mid-market housing vertical. Property consultants Jones Lang LaSalle’s real estate investment arm Segregated Funds Group, Avenue Real Estate Fund and Amplus Capital Advisors Pvt. Ltd. are its other investors.In March, the company announced the launch of its township brand ‘Assetz Lifestyle’, under whose ambit build mid-market housing projects be would be completed. Over the next ten years, the groupiplans to build around 10,000 homes along the growth corridors of Bengaluru and expects to generate a sum of aroundRs.5,000 crore in revenue from this business alone. This comes in the context of PE funding in the real estate sector, which has remained steady for the last two years.