Jones Lang LaSalle Segregated Funds Group, the real estate private equity arm of consultancy firm JLL, has invested Rs 20 crore ($3 million) in a residential project of Chennai-based developer Plaza Group, the company said in a statement. This marks the second deal of the firm from its maiden fund Residential Opportunities Fund–I.
Mridul Upreti, chief executive officer, Segregated Funds Group, said, “We see value in mid income housing projects in prominent micro markets within Chennai. This deal also furthers our existing footprint in south India.â€
The investment has been made in a residential project located in Kovilambakkam near OMR, Chennai.
The developer Plaza Group has delivered eight projects in last 10 years and has four ongoing projects which are expected to be completed in three years.
The second deal of JLL’s realty PE arm has taken some time to materialise. It sealed its debut deal in February this year when it invested Rs 24 crore in a residential project of Bangalore-based developer Assetz Property.
JLL has made final close of its maiden real estate fund at Rs 160.75 crore ($26 million). Launched in 2012, the fund was originally targeting to raise Rs 300 crore.
On an average the fund aims to invest Rs 25-30 crore per project.
The real estate market of South India led by Bangalore has outdone Mumbai and NCR in terms of attracting private equity funding in the last three-four quarters. Healthy sales volume compared to Mumbai and NCR has made the region a preferred destination for investors. Read here for more.
Recently, Aditya Birla Real Estate Fund invested Rs 50 crores in a Chennai project of Barath Building Construction Pvt Ltd (BBCL).
In other deals, Reliance AIF and Indostar collectively invested invested Rs 200 crore in a Chennai project of Alliance Infrastructure Pvt Ltd.
(Edited by Joby Puthuparampil Johnson)