Jones Lang LaSalle Plans to Raise Rs.1200 Cr for Commercial Realty
BANGALORE: In late 2012, Jones Lang LaSalle introduced a private equity fund, collecting Rs.300 Cr. Now, the firm is preparing to raise another realty fund focused on the commercial sector.
The new fund, planned to be four times larger than the initial one, will concentrate on the commercial realty sector. This initiative comes after the success of their previous fund, which was invested in the residential market of Bangalore, specifically in two residential projects.
Fund Details
- The new Rs.1200 Cr realty fund is anticipated to launch by the end of 2013.
- JLL's first fund was invested in the residential sector, with the new fund targeting the commercial sector.
- Details about whether the investment will be domestic or offshore are yet to be decided.
Insider Comments
While senior executives of JLL could not be reached for comment, a person with direct knowledge indicated that the investment will be in the commercial sector. They added that the real estate consultants are seeking higher returns, making the commercial realty sector more appealing currently.
Investment in Bangalore
JLL is poised to invest in the residential market of Bangalore from their first fund. The global real estate consultants will invest in two residential projects, with a minimal corpus of Rs.30 Cr.
Exploring Other Sectors
JLL is also examining the potential of investing in the retail and hospitality sector. This indicates that the fund could be diversified across various realty sub-sectors.
Global Experience
Though JLL entered the Indian fund management arena last year, the group has extensive experience globally. LaSalle Investment Management manages funds worth over Rs.2.50 lakh crore internationally.
Competitor Plans
Apart from JLL, other firms like Knight Frank and CBRE are also planning to raise realty funds for investment in the subcontinent, with a focus on the commercial sector.