South Korea’s Mi­rae As­set Global plans to launch $100 mil­lion AIF

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Bidya Sa­pam bidya.s@htlive.com

THE FUND WILL FO­CUS ON RES­I­DEN­TIAL PROJECTS ACROSS MUM­BAI, BEN­GALURU, NCR, PUNE, CHENNAI AND HY­DER­ABAD

South Korea’s Mi­rae As­set Global In­vest­ments Co. Ltd is set to launch a $100 mil­lion al­ter­na­tive in­vest­ment fund (AIF) in In­dia pri­mar­ily to in­vest in res­i­den­tial projects, said a top com­pany ex­ec­u­tive.

The com­pany had an­nounced its plans to en­ter the In­dian real es­tate mar­ket last year, and had sub­se­quently got the ap­proval from the Se­cu­ri­ties and Ex­change Board of In­dia (Sebi) to launch the Mi­rae As­set Credit Op­por­tu­ni­ties fund.

Ac­cord­ing to Puneet Bha­tia, head, real es­tate, Mi­rae As­set Global In­vest­ments (In­dia), the AIF li­cense was se­cured last month, and now it is seek­ing to “pri­mar­ily pro­vide debt through non-con­vert­ible deben­tures”. The par­ent firm will be pump­ing in the en­tire cap­i­tal.

The fund will fo­cus on res­i­den­tial projects across Mum­bai, Ben­galuru, NCR, Pune, Chennai and Hy­der­abad, and is likely to be de­ployed within the next 18 months.

“From a tim­ing per­spec­tive, the op­por­tu­nity is very large in the res­i­den­tial mar­ket with RERA, and post-de­mon­eti­sa­tion,” Bha­tia said.

The com­pany is in ad­vanced talks with a real es­tate de­vel- oper to sign a ₹70 crore deal.

Last Septem­ber, Mint had re­ported that the Korean mu­tual fund house plans to en­ter In­dia’s real es­tate sec­tor with a $500 mil­lion in­vest­ment for buy­ing com­mer­cial leased prop­er­ties.

How­ever, Bha­tia said that the com­pany had changed its ini­tials plans of in­vest­ing only in com­mer­cial real es­tate, given the ris­ing op­por­tu­ni­ties in the hous­ing mar­ket.

Of the $500 mil­lion, $100 mil­lion will be in­vested in res­i­den­tial projects. “We will also con­tinue to look at office ac­qui­si­tion deals be­sides res­i­den­tial debt lend­ing.”

Bha­tia, who was pre­vi­ously em­ployed with with Edel­weiss Fi­nan­cial group, was roped in to head the seven-mem­ber In­dia unit.

Glob­ally, the Mi­rae Group’s as­sets un­der man­age­ment stands at $100.5 bil­lion. Its prod­uct port­fo­lio in­cludes fixed in­come, mu­tual funds, private eq­uity and real es­tate.

In In­dia, it is man­ag­ing ₹10,000 crore of mu­tual fund as­sets. It owns and man­ages $11.6 bil­lion worth of real es­tate prop­er­ties across 12 coun­tries.

Ear­lier, Jun Young Hong, head-busi­nesses, Mi­rae As­set Global In­vest­ments (In­dia) Pvt. Ltd, had said that the firm is look­ing to buy prime com­mer­cial as­sets, in­clud­ing IT parks, cor­po­rate of­fices, ware­hous­ing and “se­lected hospi­tal­ity as­sets”.

He had said that the com­pany would be cre­at­ing a port­fo­lio of in­come-gen­er­at­ing large as­sets and “not smaller stand alone or strata own­er­ships”.

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