News: Pantaloon-promoted Future Capital to set up real estate fund

(TNN 01/05/2006) Mumbai - Close on the heels of the quick deployment of the Kshitij real estate fund (KVC) Fund 1, the Pantaloon group-promoted Future Capital Holdings is planning to set up Kshitij 2, another real estate fund, to focus on several upcoming projects in Tier-III cities. The first Kshitij fund, which closed in the middle of last year, focuses primarily on projects in the metro cities. The group is contemplating a corpus of around Rs 300-500 crore for Kshitij 2, it is learnt. Yet another fund, Horizons, which has a lot of foreign investors, closed recently at $ 263m, sources said. Horizons, which has a lot of foreign investors, focuses on areas of more than 50,000 sq ft. Kshitij 1 closed last year at around $350m. Confirming these plans, Shishir Baijal CEO & MD of Kshitij and Horizon funds, said the group is planning a fund to tap the growing real estate in the smaller cities. “Kshitij 1 is already fully committed and we are just planning another one to focus on smaller projects.” Kshitij 1 is understood to have invested in projects around Tier-II cities like Ahmedabad, Baroda University, Cochin, Jaipur and Trivandrum. Horizon International Fund is aimed at foreign direct investors coming to India under the new 100% FDI norms. The Horizon Fund has already identified four potential investments in Mumbai, Chennai, Bangalore and Kolkata, with an approximate total retail GFA (gross floor area) of 4.1m sq ft and an estimated total project cost of $330m. These properties are to be completed by ’08-09.