Bahrain-based alternative investment manager Investcorp has raised $130 million in anchor commitments for projects in India.
The commitments will provide last mile funding in India, a market currently going through a liquidity crunch, according to Investcorp.
BAe Systems Pension Funds Investment Management Limited is the main investor for this initiative, focusing on projects in the affordable and mid-market housing segment in the top seven cities in India and subject to regulatory approvals and registrations.
“We believe that the Indian affordable housing segment represents a sizeable and attractive market opportunity catalysed by urbanisation and structural reforms,” said Vikram Aggarwal, Head of Private Markets, BAe Systems Pensions.
Yusef Al Yusef, Managing Director, Investcorp, commented: “The long-term secular trends of urbanization and rising income levels in India make this a compelling opportunity. We believe that the current short-term liquidity constraints in the market provides us an excellent platform to grow our real estate business.”
Investcorp manages over $28 billion globally. In India, the company’s real estate business has deployed over $200 million through two funds across 27 residential projects located in the top tier cities.
The funds provided structured senior credit to mid-market and affordable housing projects. The company is also active in the mid-market private equity space in India, having made five investments, in Zolo Stays, Citykart, Intergrow Brands, Bewakoof, and Nephroplus in 2019.
(Reporting by Gerard Aoun; editing by Seban Scaria)
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