News: Pantaloon ties with Singapore firm to tap realty market

(PTI 20/04/2006)Mumbai - To tap the booming real estate sector of India, Singapore-based CapitaLand Ltd on Wednesday entered into a 50:50 joint venture with Indian retail major Pantaloon Retail India Ltd (PRIL).

The Singapore company, through its indirect wholly owned subsidiary CapitaLand Retail India plans to invest USD 75 million in Horizon Realty Fund, an international fund managed by Kshitij Investment Advisory Company Ltd (KIACL), the asset management arm of Pantaloon Retail.

Also, CapitaLand India has signed a heads of agreement with Pantaloon for a similar Joint Venture for a Retail Management Company and a Joint Venture Fund Management Company.

The Horizon Fund, aiming to invest predominantly in retail real estate, will be KIACL's second real estate fund after the Domestic Indian Rupee Fund. The new fund has an initial target fund size of USD 250 million with an estimate final closing of USD 350 million, a release here stated.

The Venture Fund Management Company formed by Pantaloon and Capitaland has ambitious plans to create a Development Fund, a retail income fund to tap retail opportunities. CapitaLand intends to invest about 20-40 per cent as sponsor, the release added.

The Joint Venture for the Retail Management Company will provide retail management services to the retail ventures and properties of Pantaloon.