Infinite India Investment Management (IIIM), one of the largest dedicated real estate private equity investment firms, plans to pump in $400 million in the real estate sector in 2-3 years. Infinite will primarily focus on residential, commercial, retail and hospitality sectors.

Speaking to DNA Money, Karthik Sarma, CIO, Infinite India, said: “As of today $60 million has been already deployed as the first tranche of investment across the five projects identified. Further investments will be done at various phases in these projects. We are actively pursuing new developments.”

Though exact details on Infinite India’s investments in the five projects are not public as yet, the firm has indicated that the select projects will have multi-sector focus. Among the projects being identified is a 1.1 million sq ft development near Powai lake in suburban Mumbai. “It will be one of the largest mixed use developments in that area and will include a sprawling luxury apartment complex,” said Sarma.

Another project identified is a Mumbai-based real estate and infrastructure construction company MAN Infraconstruction.

A minority stake in a Bangalore-based development company and a 1.8 million sq ft IT park, RR Infopark, in Chennai as well as a Delhi-based serviced apartment chain with expansion plans across the country have also been identified. The IT project is expected to be operational in the current year itself.

The company has one operational asset in Bangalore and the second one will be launched very soon in Delhi. “There are another seven serviced apartment projects in the pipeline taking the total number to nine. All projects are expected to be operational in another 14-18 month’s time,” said Sarma.

Refraining from giving more details, he indicated the serviced apartment chain will be operated under an indigenous brand. There are possibilities of having more than one brand for the said facilities. “Details will be made public in another three months or so,” he said.

“Though we have an IT park in our investment portfolio currently, going forward we would like to take a cautious approach on this area of development. There is anyways too much supply in the IT space, which looks very scary from an investor’s point of view,” Sarma said.

Targeting a return of 30% on investments, the firm has a 3-5 year exit plan for investments. Sarma did not rule out the possibility of launching a second real estate fund.

Infinite India is backed by the JM Financial Group, its lead sponsor in the country.

MUMBAI,April 12, 2007
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