ICICI Venture Secures Substantial Real Estate Fund
One of India's foremost private equity firms, ICICI Venture, successfully accumulated almost $700 million through real estate and similar investment vehicles last year.
ICICI Venture raises realty fund
In the preceding year, ICICI Venture (I-Ven) successfully raised these funds, specifically closing its second real estate fund, known as the India Advantage Fund Real Estate Series 2. This fund was strategically deployed into two significant projects, one located in the National Capital Region (NCR) and the other in Mumbai. Both investments revolved around ₹100 Cr each.
Project Investments
- The initial investment within the NCR focuses on a group housing project spearheaded by Advance India Projects Ltd.
- The subsequent investment involves a high-end luxury project under development by Ahuja Developers in Mumbai.
Expansion Plans
Looking ahead, I-Ven intends to further expand its investment portfolio with real estate ventures across major Indian metropolitan areas. They plan to target Mumbai, Chennai, Hyderabad, NCR, Bangalore, Kolkata and Pune.
New realty fund by ICICI Venture
Notably, ICICI Venture's first real estate fund, India Advantage Fund Real Estate Series 1, amassed $550 million, which was subsequently allocated to approximately 13 projects.
Market Growth
The real estate sector experienced a robust surge in fund mobilization during 2012, with nearly $1 billion, equivalent to ₹5000 Cr, raised through 14 distinct funds. This figure significantly surpassed the $900 million raised through nine funds in 2011, as well as the $200 million secured via four funds in 2010.
Infrastructure Fund
Reportedly, the organization has secured commitments totaling $275 million for its infrastructure development fund and intends to announce its closing soon. The India Infrastructure Advantage Fund, launched in 2010 with a corpus of $500 million, was invested across various sub-sectors, encompassing roads, railways, ports, airports, power, telecom, and social infrastructure development.
Vishakha Mulye, CEO of ICICI Venture Funds, chose not to reveal the precise figures, expressing satisfaction with the outcome. "The firm is happy about the outcome and hopefully looks forward," he stated, acknowledging the hurdles in securing such funding amidst India's challenging economic climate in the preceding year and highlighting the fund's focus on investments in distressed assets.