Blumberg Capital Partners, the Miami-based investment management firm, is planning to allocate $100 million from its Strategic Asset Fund, into Indian real estate.
According to a report by Wall Street Journal linked website, Livemint.com, the firm is targeting commercial real estate investments alongside passive investments in residential assets and expects to invest the money within three years.
Blumberg’s investment in India is expected to form part of its plan to invest up to 30 percent of the fund, which is targeting $1 billion in equity commitments in total and has already attracted $100 million in soft and hard commitments, in the country. The firm is also expected to make capital outlays in the Middle East and Brazil also with the majority of the fund to be invested in the US.
There have been few successful capital closings for Indian real estate of late on account of waning investor sentiment towards the country, seen by many as too high risk. Despite that, there are India-focused firms actively fundraising, such as Red Fort Capital, which is seeking to corral more than $400 million for the follow-up to its Red Fort India Real Estate Fund I.
Blumberg is targeting investment from a mix of investors including family offices and sovereign wealth funds, as well as institutions.