News: Deutsche eyes India real estate

(TT 16/06/2006) Mumbai - The booming real estate industry has started to attract a number of global players that are sniffing for opportunities.

The latest to join the bandwagon is Deutsche Bank.

“We are considering the possibility of opening an office in India. We are looking at physical presence in the country. One of our colleagues from London will be permanently based here,” Venkateshwaran Raje, senior adviser, DB Real Estate, said on the sidelines of a CII-Mutual Fund seminar here.

Deutsche Bank Real Estate is the global division of Deutsche Bank Asset Management responsible for real estate funds management.

“We have a presence in almost 22 countries. Within the emerging markets, India and China are going to be our key investment areas now,” Raje added.

The investment in the country will be through the FDI route.

“Since all our investments in India will be through the FDI route, we will be looking at investing in new properties which are to be constructed and there are certain stipulations and regulatory issues that we will need to adhere to here,” he said.

According to the Deutsche Bank estimates, India has an investable market of $83 billion. Close to $4-6 billion of real estate, out of the country’s $83 billion so-called investment grade properties, are held by investors because 90 per cent of the assets are owned by occupiers.