Prudential's real estate investment management division has established Pramerica BHI India as a private equity real estate joint venture.
Prudential and partner Beekman Helix have already made 11 equity investments in India totalling $220 million (€141 million). The JV is set to expand on that relationship.
In a statement, the companies said Pramerica BHI India would be headquartered in Gurgaon, near New Delhi, and invest in middle-income residential development projects and office parks, as well as other sectors.
Victoria Shigehira Sharpe, managing director of PREI and chief executive of PREI-Asia, said: “This strategy provides our investors with the opportunity to capitalize on the dynamic growth in India that has created demand for institutional quality real estate.”
According to the firms, about 30 percent of India's population lives in urban areas, a rate the McKinsey Global Institute estimates will grow to 40 percent by 2020. Additionally, experts estimate that India's population could overtake China's by 2030.
PREI, in its recent Asia Quarterly report, estimated that India could see GDP growth of 8 percent for 2008. Beekman Helix India Partners is a private real estate merchant bank based in the US with subsidiaries and affiliates in India and Cyprus. Prudential is a financial services firm with approximately $631 billion of assets under management.