Saffron shelves sector specific fund launches

Saffron Asset Advisors, the Mumbai-based real estate investment management firm is to halt plans for three sector specific India funds in order to concentrate its efforts on its existing portfolio.

Saffron Asset Advisors, the real estate investment management firm which manages investments made by Amsterdam-listed Yatra Capital, is to halt plans to raise a series of private sector specific investment funds.

The firm, which is fundraising for an Indian focused real estate investment fund, Saffron India Real Estate Fund I, had planned to raise three further vehicles: hospitality, logistics and infrastructure. However, according to a report by media outlet VCCircle, the firm is to re-channel its focus to its existing portfolio of investments.

The firm’s managing director, Ajoy Kapoor, told VCCircle that it would focus on making investments and exits from its listed entity in order to maximise shareholder value. Yatra Capital has invested about $300 million of its equity, equivalent to 75 percent of capital commitments , on 13 developments in the retail, office and residential sectors. In total, the firm manages about 20 million square feet of real estate.

“We need to prove our track record and then think of increasing our assets under management,” Kapoor was quoted as saying.

According to reports last year, Saffron had originally planned to raise a $500 million infrastructure fund and $200 million hotel and logistics funds.

The plans were first announced when it corralled an investment of $75 million from Standard Life in April 2008 for its more general real estate fund, Saffron India Real Estate I, a vehicle targeting a hard cap of $500 million.