RREEF to invest in realty & infrastructure

Mumbai: RREEF Alternative Investments, the global alternative investment management business of Deutsche Bank, plans to invest over $1 billion (about Rs 4,000 crore) in the country across the real estate and infrastructure sectors over the next three years.

It will operate in India through RREEF India Advisors Private Ltd, a new initiative that will be based in Mumbai with an initial team of six professionals to provide real estate and infrastructure advisory services to RREEF’s offshore funds.

“India is a particularly attractive emerging real estate and infrastructure market for our high return-oriented offshore clients,” said Mr Kurt Roeloffs, CEO of RREEF Asia Pacific.

RREEF, which made investments worth $70 million (about Rs 280 crore) in a Bangalore and Hyderabad-based residential real estate development company Golden Gate Properties Ltd early this year, has now taken a 60 per cent stake in joint venture with NCC Urban Infrastructure Ltd (A Nagarjuna Construction group company)

The joint venture is developing a $400 million (about Rs 1,600 crore) mixed use project in the IT/ITeS zone in Hyderabad.

The current size of the Indian real estate market is estimated to be around $57 billion and is expected to grow to $105 billion by 2012, said Mr Kishore Gotety, Country Head, RREEF India Advisors Pvt Ltd.

“The market would demand an investment required of $85 billion across all sectors,” he added.

“Of course, the big opportunities inherent in investments in Indian infrastructure are not without specific risks. Besides the usual macroeconomic risks linked with emerging markets, the low degree of market liquidity and the unsatisfactory transparency of the markets and players are factors particularly worth mentioning,” mentions a RREEF research report.

RREEF is the brand name of the real estate and infrastructure division for asset management activities of Deutsche Bank AG.