Foreign funds hot up Nashik estate

Nashik: Listed on the alternate investment market of the London Stock Exchange, the $100 million Eredene Capital Fund has bought out 50 per cent of an upcoming mall, worth over Rs 250 crore in Nashik.

Eredene Capital Funds is a real estate fund targeted at India and managed by Saffron Asset Advisors.

Eredene Capital has roped in investors such as Henderson Global Investors that manages over £63 billion globally, Rand Merchant Bank - one of South Africa's largest JSE listed financial institutes and the Caledonian Group.

These shareholders now have their money pumped into the upcoming 8-lakh sq foot Nashik city mall and Eredene capital is aiming at a return of over 40 per cent pre tax.

"The mitigation of risk as far as the shareholders of Eredene capital in London are concerned has to be in place. So we have already let out a substantial part of the mall and the rest will be leased out in four months," said Saffron Asset Advisors MD Ajoy Kapoor.

City mall will be ready for business in the next 18 months and already has anchor tenants such as Pantaloon, Big Bazaar, McDonalds and Fab India.

Saffron Asset Advisors, which aims at managing a billion dollars under its four real estate funds, is also close to finalising realty deals in Tier II cities such as Bhopal and Indore.

Analysts say with many property funds closely looking to invest in Tier II and III cities, real estate will soon be the buzzword in those areas.

(With inputs from Tejaswi Rathore)

(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)