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Actis makes first investment in Indian real estate sector

Emerging markets private equity firm Actis has invested in a joint venture company alongside the Vaishnavi Group, a company active in residential and commercial projects, to construct a re

Emerging markets private equity firm Actis has invested in a joint venture company alongside the Vaishnavi Group, a company active in residential and commercial projects, to construct a residential and retail development in Bangalore.

The USD25m investment in one of India’s fastest-growing cities is the first deal in the country by Actis since expanding its real estate activities to take advantage of India’s rapid urbanisation.

Of the total investment, USD7.5m will fund the construction of a development that will provide some 925,000 square feet of residential and retail space in the Bangalore suburb of Yeshwantpur, with the rest earmarked for further projects to be developed by the Vaishnavi Group.

The Bangalore-based Vaishnavi Group, led by C.N. Govindaraju, has developed several high-quality residential and commercial properties in the city over the past decade and has secured for the Yeshwantpur development a site located close to established residential areas and transport links, including a highway linking Bangalore with Mumbai and Pune, planned rail and metro connections, and the city’s new international airport.

‘We are delighted to partner with C.N. Govindaraju and his team,’ says Chanakya Chakravarti, a managing director and head of Actis’s real estate business in India. The Vaishnavi business model fits our strategy of investing and partnering with established local developers in emerging business destinations and peripheral locations within large metropolitan areas where mid-market residential and commercial property is in great demand.

‘The company is also committed to sustainable development, a core part of Actis’s investment proposition, and we look forward to working with the team to build a quality development that lasts and supports long-term economic development.’

Vaishnavi managing director Govindaraju adds: ‘The Actis team bring significant expertise and experience of investing in the India real estate sector and we look forward to working with them to ensure the success of this development.’

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