HSBC is working on an India-specific real estate fund, with a target of USD 500-600 million. The London-based bank is planning to garner a share of the booming real
estate India market, and HSBC’s realty fund would be its first India focused fund.
HSBC has thus far invested in India through its equity arm, the HSBC Private
Equity (Asia) Ltd. The bank operates through a number of subsidiaries in
India, including an asset management arm, an insurance brokerage firm,
and an investment banking arm.
HSBC is one of the largest banking and financial
services firms holding assets worth USD 2,150 billion on June 30, 2007.
Several financial companies have floated Indian realty specific funds
of late – these include HDFC, Kotak Realty and IL&FS.
These have proved safe avenues for international investors to participate
in the Indian real estate market. HDFC successfully raised USD 750 million
through an international fund in September 2006, while IL&FS raised USD 502.57 million in May 2006.
Kotak Realty has managed to raise USD 400 million.
In the wings are other global financial institutions like Goldman Sachs,
Morgan Stanley, Lehman Brothers and Merrill Lynch, who are likely to make
the most of the Indian realty market.
