Bahrain-based alternative investment firm Investcorp has raised $130 million for an affordable housing fund in India.
The fund will focus on affordable and mid-market housing projects in seven Indian cities.
The British institutional investor BAE Systems Pension Funds Investment Management has come in as the anchor investor for the fund.
The firm’s head of private markets, Vikram Aggarwal, said there is significant demand for affordable housing projects in India but so far there has been little institutional capital to help provide the supply.
Meanwhile Investcorp’s London-based principal Sanjay Kohli said that recent policy reforms in India such as the real estate regulatory act have helped to create a more transparent market which should attract more international institutional investors.
Investcorp only entered India’s alternative investment market in 2019 when it acquired the private equity and real estate business of IDFC.
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