... Plan overseas realty fund

MUMBAI: Tata Group’s real estate arm Tata Realty and Infrastructure Limited (TRIL) is looking at launching an off-shore infrastructure fund.

While the exact sum to be raised has not been finalised as yet, company sources indicated that it will certainly be much larger than the $750 million real estate fund expected to be closed next month.

Dinesh Chandiok, CEO and MD, TRIL in conversation with DNA Money, while refraining from making any precise comments on the extent of money to be raised said,

“We are still working out those details. All I can say now is that the fund should get launched early next year.” Company officials however indicated that the plan would be to raise in excess of $1 billion.

While Sydney-based Macquaire were the advisors for Tata Realty’s first $750 million real estate fund, the company is still to appoint financials advisors for the infrastructure fund.

And though the new fund will primarily be an off-shore fund, the TRIL management is looking at having a minor domestic component to it as well.

As for the seven-year, $750 million realestate fund is concerned, it is expected to close next month.

This fund will comprise long-term investors such as pension funds,insurance companies and government organisations.

TRIL will focus on infrastructure projects related to airports, urban infrastructure, roads, bridges, SEZs and logistics parks, among others.

With demand for large commercial spaces and retail malls driving rapid development of available land, TRIL will focus on long-term projects of national significance, as well as shorter term projects in real estate.