Berggruen Holdings (BH), a private investment firm, is making its foray into India's real estate market with an ambitious lineup of commercial and residential projects. The company aims to leverage the current sluggish market conditions to capitalize on investment opportunities.
According to Nicolas Berggruen, the founder of Berggruen Holdings, "The real estate market is going to be difficult for a couple of years. It will be bad because the projects will be slower. But it will be a better opportunity for people willing to invest. But the valuations are more reasonable now."
BH's investment strategy is not limited by specific sectors or asset classes since the firm manages its own proprietary capital, which exceeds $1 billion, without the constraints of external investor expectations. To date, the firm has invested $30 million and has plans to pour another $20 million into its initiatives.
The company's inaugural venture into real estate is a Rs 350-crore commercial project located in Hyderabad, set to commence at the end of this year. Other targeted locations for development include Nagpur, Coimbatore, Mysore, Raipur, and Vizag, catering both to commercial and residential needs.
Berggruen emphasized, "We have a group of people who can execute property development from A to Z. They will acquire land, develop capability, deliver projects in housing and retail formats. Quality and aesthetics will be a major component."
For the past two years, Berggruen Holdings has been active in India, diversifying its investments across asset classes such as private equity, real estate, and public markets. With a total investment of $100 million in various sectors—including hospitality, education, car rentals, warehouse and logistics, equipment rental, and real estate—the firm is positioning itself for long-term success.
Berggruen noted, "India has the advantage of being vast and presents dynamic opportunities. We decided to start business from zero, instead of buying into existing ones." Additionally, retail and energy sectors are among those the company is keenly exploring within India.