Morgan Stanley, JP Morgan raise money for India

The two US investment banks are demonstrating the growing appetite for Indian real estate with recent fund announcements.

Property professionals from JP Morgan Asset Management and Morgan Stanley are going to start earning some frequent flier miles, as both firms have announced plans to spend hundreds of millions of dollars on Indian real estate in the near future. 

New York-based JP Morgan Asset Management has reportedly raised $360 million (€281 million) for its India Property Fund, which is targeting returns of 20 percent and is focusing on new developments in the office, residential, industrial, logistics, retail and hospitality sectors in large urban centers.

Geographically, the vehicle is focusing on regional and national cities on the subcontinent, including Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, New Delhi and Pune. The fund sponsor will also look at IT-related opportunities in smaller markets like Surat, Vizag and Nagpur.

Morgan Stanley has also announced plans to spend more than $1 billion in Indian real estate and property companies over the next five years.

“India is one of the most important investment markets in Asia,” executive director for Asia Pacific Zain Fancy told Reuters. “We will continue to invest here.”

Over the past six months, the investment bank has already invested a combined $140 million in two realty companies, Bangalore-based Mantri Developers and Delhi-based Alpha G, and a serviced apartment project in Pune. It closed its most recent international real estate vehicle in March on $4.2 billion.