Bangalore-based Redwoods Capital is looking to raise a real estate fund with an initial target corpus of $50 million (Rs 223 crore). Redwoods Capital, an asset management venture, is being floated by former BNP Paribas Real Estate India head Anuj Nautiyal. The new venture is being backed by at least two New Delhi-based industrialists in their personal capacity, and will dabble in real estate fund management and brokerage amongst other offerings.
The venture comes after Nautiyal's exit from the role of managing director and chief executive at BNP Paribas Real Estate last week, and his decision to sell 16% stake back to the French financial conglomerate. With this, the Paris-based parent will be hiking its stake in BNP Paribas Indian Real Estate unit to over 70% when the transaction is completed.
While a BNP Paribas spokesperson declined to comment, Anuj Nautiyal could not be reached for his response to this information.
In 2008, BNP Paribas entered the domestic real estate brokerage space by forging a joint venture with Redwoods Group. The French giant held 55% stake while the promoters of Redwoods held the remaining equity. Nautiyal's partner Raja Kaushal will now be spearheading BNP Paribas
Real Estate after the former's exit.
Redwoods Group was founded in 2006 by Nautiyal, who was earlier a senior manager with Jones Lang LaSalle. The group's portfolio also includes Redwoods Infrastructure, which is exploring its foray into the infrastructure sector.
Private equity investments in the Indian real estate sector have been showing an uptick of late, especially at the project or SPV level in the residential space. Private equity firms have invested $981 million across 31 real estate deals in this financial year as of Oct 7 2010, according to VCCEdge. This represents an 84% jump in terms of deal value as compared to the same period last year.