Yatra Capital to Increase Investment In India

Yatra Capital Announces ₹115 cr Investment in Indian Real Estate for FY10

Euronext-listed Yatra Capital, managed by Saffron Capital Advisors, an Indian Real Estate Private Equity fund, has revealed plans to invest approximately 20 million Euros (₹115 cr) in the Indian real estate sector in FY10. This investment will be distributed across two key deals within the domestic real estate market.

Existing Portfolio Highlights

  • Total investment: Rs 916 cr across 13 projects, including 2 entity-level deals
  • Weighted average Yatra Equity Fund coverage: 27 million square feet spanning 9 cities
  • Successful sales or pre-lets: over 3 million square feet across various projects

Investment Strategy and Market Outlook

According to Mr. Christopher Wright, Chairman and Co-Founder of Yatra Capital, “In India, one needs to be very careful on Real Estate investments as the market is volatile. After a drop in 2008-09, the realty sector is now moving up. The Indian economy is growing well making people more confident on future investments. We have invested 44% in residential projects, which would be our focus area in future. We always look at investing in affordable residential projects in tier I and II cities.”

Notable Investments

  • ₹90 cr Residential Project and ₹97 cr Market City Retail Project at Pune
  • ₹115 cr in Riverbank Holdings
  • ₹91 cr in Forum IT Parks and ₹23 cr in Taj Gateway at Kolkata
  • ₹160 cr in Market City at Bangalore and ₹57 cr at Nashik

Strategic Partnerships

Yatra has forged a partnership with Phoenix Mills for 5 various projects across Bangalore, Pune, and Mumbai.

Market Analysis (as per Yatra's March investor presentation)

  • Most markets have seen positive traction due to price cuts.
  • Developers have now started raising prices, especially in Mumbai and the National Capital Region, leading to a slowdown in sales.
  • Projects with realistic pricing continue to enjoy healthy absorptions.
  • The tightening monetary environment may impact the fund-raising environment for many real estate companies.
  • Investor enthusiasm for participating in realty IPOs remains muted.