Anand Jain’s fund disburses Rs 3,200 cr

The Urban Infra Opportunity Fund (UIOF) floated by Anand Jain, with close to 10% backing from the Mukesh Ambani Group, has disbursed Rs 2,200 crore from its domestic fund and Rs 1,000 crore from its international fund.

The fund has several townships and mixed-use developments in cities that include Mumbai, Chennai, Hyderabad, Bangalore, Nagpur, Nashik, Pune and Visakhapatnam.

The fund has 10% exposure to hotel projects and is keen
on undertaking these projects only if a hotel partner comes with equity participation.

So it is awaiting partners for its Metrozone Township project’s hotel component in Chennai, which is developed by the Ozone Group.

“The fund will go ahead without any equity participation from a hotel franchisee only in case of its Bandra Kurla project with the Maker group, where it is putting up two properties with 400-keys inventory together. But hotel sites such as Nashik and Chennai will happen only when they tie-up with brands who will bring
funds with them,” a source told DNA.

The company has decided to wait a year before they start exiting these projects (once the deliveries begin) and for exits they are looking at valuations that they will receive at the end of 2012, once the projects are ready.

It recently exited Umaid Heritage’s hotel component from the entire portfolio for a valuation close to Rs 22 crore to Mirah Group, a business conglomerate of the Om Prakash Goenka.
Maharaja Gaj Singh II entered into a joint venture with the Essgee Group to convert the royal residence into an international residential villa-styled complex, said sources close to the development.

UIOF is also waiting for its real estate properties to start delivering its inventory.

Its Metrozone property has already clocked sales of close to Rs 600 crore and delivery of its first phase would begin mid-2012 onwards.

Mumbai projects such as Neelkanth Business Park in Ghatkopar and commercial property in Prabhadevi, undertaken in their own capacity, will start deliveries from March 2011.

Close to 19-20 projects have been launched which have started tapping sales.

The fund holds a significant stake in every project, but
less than 50% with an investment sweet spot of Rs 75-100 crore per investment.

Most of the investments have been done on special purpose vehicle (SPV) level.