3i in talks to invest in Piramal fund

3I GROUP, the UK-based private equity player with holdings in more than a thousand companies all over the world, is in advanced stage of negotiations to pick up an equity stake in the Ajay Piramal group's realty fund Indiareit, according to sources in the company. Indiareit is a close-ended domestic venture capital fund. 3i is in advanced talks to pick up stake in Indiareit, and a formal announcement is expected shortly, say sources. Private equity funds have been showing an appetite for investing in real estate venture capital funds. Morgan Stanley has recently picked up stake in a Delhibased real estate venture Al pha G Corp for Rs 292 crores. 3i's investment would mark the private equity firm's entry into the real estate segment. The value of 3i's investments and the quantum is not known. 3i officials were unavailable for comments. Real estate venture capital funds are instruments whose objective is to invest in projects within the ambit of real estate, focusing on long-term capital appreciation. The fund will participate by means of equity instruments of unlisted companies such as special purpose vehicles for specific sources. Indiareit will invest in projects typically within Rs 30 to 60 crore with an average maturity of three to five years within the fund life of seven years. 3I GROUP, the UK-based pri- vate equity player with hold- ings in more than a thou- sand companies all over the world, is in advanced stage of negotiations to pick up an equity stake in the Ajay Pi- ramal group's realty fund Indiareit, according to sources in the company. Indiareit is a close-ended domestic venture capital fund. 3i is in advanced talks to pick up stake in Indiareit, and a formal announcement is expected shortly, say sources. Private equity funds have been showing an appetite for investing in real estate venture capital funds. Mor- gan Stanley has recently picked up stake in a Delhi- based real estate venture Al- pha G Corp for Rs 292 crores. 3i's investment would mark the private equity firm's en- try into the real estate seg- ment. The value of 3i's in- vestments and the quantum is not known. 3i officials were unavailable for com- ments. Real estate venture capi- tal funds are instruments whose objective is to invest in projects within the ambit of real estate, focusing on long-term capital apprecia- tion. The fund will partici- pate by means of equity in- struments of unlisted com- panies such as special pur- pose vehicles for specific sources. Indiareit will invest in projects typically within Rs 30 to 60 crore with an aver- age maturity of three to five years within the fund life of seven years. Source://epaper.hindustantimes.com