Red Fort Capital Advisors, an Indian firm established three years ago, has launched its first domestic fund, targeting Rs1000 crore ($250 million, €171 million).
The open-ended fund will mainly target land acquisition in key cities across India, with 80 percent of the fund going toward land. The fund will also invest in redevelopment in Mumbai and other key cities.
At the moment the Cayman Islands-based firm has about ten investors from around the globe, and for this new fund it will target high net worth individuals, corporates, trusts and institutions in India. Returns are expected to be delivered to investors within three to five years. The fund is expected to be completely deployed in the next year, investing in projects worth over $1 billion.
The firm plans to target 1200-1500 acres of under-valued land for residential, commercial, IT, retail and hospitality projects, looking to make profit through land appreciation.
Red Fort has already invested in projects worth over Rs 7,500 crore in the last year, partnering with the Bangalore-based Prestige Group and Hyderabad-based Indu Projects.
In December Red Fort announced it would invest $100 million in the city of Chennai over the next six months, kicking off its activities by acquiring residential land close to Ambattur, an emerging IT hub outside the city.