British investment management group Protego Real Estate Investors LLP has announced that it hopes to raise up to $400 million of equity to launch a speculative Indian office development fund called the ‘Protego WIRE Indian Office Development Fund.’
It is a closed-ended, seven-year fund which will invest primarily in office
development projects in tier one and tier two cities in India. It plans
to raise $150 million of seed equity by the end of the fund's first closing
in February and net returns in the region of 25 per cent.
Designed in joint venture with WIRE Commercial Partners, a unit of Singaporean
property services company WIRE Group
Also on the agenda is an Indian office investment fund by June 2009
that will complement the development venture. This fund will have the
option to complete developments at the market valuation and acquire other
assets as appropriate.
Charles Weeks, head of business development at Protego informed that
there is a huge primary demand for quality office space by international
corporates – arising out of the cost benefit from outsourcing global IT. Demand for Indian office space may increase in the region of 30 percent and 35 percent per annum compounded.
Apparently, the wire group sees a high probability of closing with investing
in real estate India and creating a pipeline of projects and has identified
a list of potential tenants to fill these projects.