UK-based investment company Eredene Capital has lined up its second fund of $300-400 million to invest in infrastructure projects in India.
MUMBAI: UK-based investment company Eredene Capital has lined up its second fund of $300-400 million to invest in infrastructure projects in India.
The fund will be raised early next year and would focus on logistics infrastructure at ports, warehouses, container freight stations, distribution, real estate and related services.
The company has a pipeline of close to 12 projects for the second fund to invest in.
This will add to Eredene’s first investment pipeline, through which it has already committed Rs 368 crore in eight projects in the country. This was part of the £50 million it raised last year on the London AIM.
Nikhil Naik, chairman, Eredene Infrastructure, said, “We are currently negotiating for one project in the port ancillary industry that would be taken as part of our first fund, which is 92% committed. After this investment, Fund 1 will close.”
“Eredene’s strategy is to look at investing in logistic companies, add value to the business and exit after 5-10 years with returns of about 20% plus for all investments,” Naik said.
Brushing aside concerns of an economic slowdown, Naik said he is confident of growth in logistics and ports. He added that even if there is a slowdown, the projected growth for the ports and warehousing industry is so large that growth will not be impacted.
“Investments would definitely be needed,” Naik said.
Eredene is not worried about the tight credit market and says that the company has received a fairly good response from investors. “Investors who believe in the India story and the logistics sector and are ready to back a fund caretaker who has experience in the sector,” Naik said.
Roughly, Eredene has earlier invested Rs 85 crore in warehousing and distribution with MJ Logistics; Rs 42 crore in a logistics park in Haldi with Apeejay Infra-logistics; Rs 21 crore in a logistics park in Kalinganagar; Rs 41 crore in an Inland Container Depot (ICD) in Gujarat; Rs 23 crore with Box Translogistics in a CFS at Pipavav Port and close to Rs 7 crore with Sattava Group for CFS at Chennai and Ennore ports.
The firm has also invested Rs 131 crore with Matheran Realty for low-cost housing and Rs 16 crore with Symcom for developing IT offices.
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