Red Fort Capital announced today that the firm has returned in excess of USD100 million to investors since 2009. Through 1Q 2011, the firm has harvested four investments in the residential and office sectors located in New Delhi, the National Capital Region and Chennai.
Parry Singh, Managing Director of Red Fort Capital, says: "Red Fort’s Fund I portfolio has transitioned to the harvesting phase, and we are pleased to have returned over USD100 million to our investors. Our investment strategy has generated tangible returns through the global economic crisis of 2008-2009, which had minimal impact on India’s solid long-term growth fundamentals."
Red Fort’s strategy of emphasising value-oriented residential housing and well-located urban office properties is supported by India’s sustainable long-term growth trends, which include 6-8% annual real GDP growth, increasing urbanisation, job creation across sectors and a burgeoning middle class with high savings and net worth.
Subhash Bedi, Managing Director of Red Fort Capital, says: "Since 2005, global investors have recognised the potential of India’s real estate sector and the possibility of achieving 25% after-tax returns in development projects with minimal leverage and low exit risk. Today, our investors now understand how theory has been converted into actual returns through a range of value-added activities including appropriate investment structuring, hands-on asset management, careful local partner selection and research based micro-market selection."
In addition to generating over USD100 million in distributions, Red Fort’s Fund I portfolio has already sold over 6,095 residential units representing USD881+ million in revenues, and three office projects have sold or leased over two million square feet worth in excess of USD328 million.