Rex

Yatra Capital, a Euronext listed Indian real estate fund, will raise $211 million to make investments in commercial, residential and retail property in the country.

The funds will be raised by selling shares to institutional investors, informs Ajoy Veer Kapoor, Director, Yatra Capital.

Investors are bullish on putting large funds in Indian property market. And their appetite to make investments is growing day by day, adds Kapoor.

India is also attracting large interests from cross-border investors as there is a surge in demand for commercial and residential spaces.

The market is likely to grow 8.5 per cent in the year to March, following an average 8.6 per cent growth over the past four years.

In 2006, Yatra raised Euro 100 million by selling shares to investors such as Aviva, Fortis, and Standard Life, a unit of ING Group.

The fund expects to grab the attention of the investors from UK and Europe. India’s real estate development market may increase more than sevenfold to $90 billion by 2015 from $12 billion in 2005, Moody’s Investors Service said in June.

Yatra has invested €88 million to develop residential, shopping malls, and hotel properties in Bangalore and tier-II cities including Pune, Nashik, Indore, and Bhavnagar.

Companies like the Housing Development Finance Corp (HDFC), Infrastructure Leasing & Finance, and Kotak Mahindra Bank are also looking forward to raise funds to invest in unlisted developers’ projects in the country.