Reports suggest that private equity funds that invested in IndiaÂ’s real estate sector during its best years in 2006 and 2007 are offloading their stakes in the projects.
These funds are now looking to exit and return money to investors as they had an investment horizon of around five years.
The latest to join the trend is Indiareit Fund Advisors which sold about Rs 440 crore worth of investments this year.
It is learnt from sources that most of IndiareitÂ’s recent exits were from investments made in real estate projects in Mumbai, Pune and Coimbatore from its first three funds.
In Pune, Indiareit sold a part of its 30 percent stake in a township project being developed by Paranjape Schemes (Construction) to IDFC Private Equity Co. for an undisclosed sum. It had invested Rs.242 crore in 2007 for the stake.
The exits add to the Rs 905 crore the real estate-focused private equity firm has returned to investors in previous years.
The fund also sold its holdings in two Ariisto Group projects in Mumbai—a residential development at Santacruz and a mixed-use project at Goregaon—back to the promoters.
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