Red Ford Capital
Adding to its portfolio in the real estate sector, local private equity fund Red Fort Capital in a recent move has decided to buy a majority stake in various residential projects being built by property developer Lotus Green entailing an investment of Rs1,000cr. The PE player will invest over Rs. 635cr in new projects to be jointly developed with Lotus Green and the remaining portion of the amount of about Rs 365cr will be invested in two existing projects which includes a township project in Gurgaon and another on Yamuna Expressway in the NCR region, Vice Chairman P Sahel said, detailing that Red fort Capital will pick up about 50% stake in these projects from the conceptualization stage, said sources.

They said adding that as PE firm will be involved in the early stages in residential space that will be self liquidating and help on time exit for the PE firm in the next 4-5 five years from the start of the projects. The PE fund had raised about $800 million under two funds-$375 million in 2006 and $415 in 2009 to invest in real estate sector. The PE firm, which has around $200 million balance to invest, is in the midst of raising $740 million under its third fund by December 2013, one of the largest fund raising exercize to invest in real estate developers. Red Fort Capital has invested in more than 20 residential projects which are developing $60 million square feet and until now they have exited 70% of its investments, the sources added.