INDIA BUSINESS WORLD - AUGUST 2006
THE MONTH THAT WAS...

JP MORGAN MOBILISES $360M FOR INDIAN REAL ESTATE FUND

JP Morgan Asset Management on Monday said that its real estate fund — JPMorgan India Property Fund — has mobilised $360 million from institutional and high net worth investors (HNIs) from the US, Asia, Europe and the Middle East.

The fund, which is focusing on the India 's real estate market since foreign investment restrictions were eased, extends the JPMorgan Asset Management's real estate platform of products to the emerging markets space, complementing its existing suite of core, core-plus and value-added property funds.

The fund, with a target net internal rate of return of 20%, focuses on the development of new properties in a broad range of real estate assets diversified across the office, residential, industrial/warehouse, retail and hospitality sectors, a JP Morgan statement issued here said. Through joint ventures with local developers, JPMorgan Asset Management will target India 's key economic centres including Mumbai, Bangalore , Chennai, Kolkata, Hyderabad , New Delhi , and Pune, with selective investments in other cities that are emerging as key economic centres at the national or regional level, including Surat , Vizag and Nagpur , the statement said. “ India is experiencing extraordinary growth in real estate demand and is arguably one of today's most compelling real estate investment opportunities. Investors are now seeking higher returns from emerging markets like India where there is enormous potential for growth and superior returns. We are not surprised at the level of interest in this and other markets with similar demographics and economic drivers,” said Joe Azelby, global head, JPMorgan Asset Management - Real Estate.