Essel Finance Realty Fund
In view of the emerging future business avenues in the real estate sector, Essel Finance, in a recent move has decided to set up Shariah fund for foreign investors keen to invest in the Indian real estate sector with an initial corpus worth Rs 620cr. As per norms prevailing in the country, one cannot set up directly Shariah-compliant fund in India and as such the player is taking the help of Shariah-compliant fund houses in Malaysia and West Asia, Chief Executive officer, Essel Financial Services, Amit Goenka, said explaining that the fund is looking to close the fund and forge partnerships with Shariah funds by February-March and the Shariah partner would offer the fund on its behalf and once the company gets its licence for the offshore fund it will bring the Shariah component under its fold.

In a similar scenario, as per reports, Taqwaa Advisory and Shariah Investment Solutions, a Mumbai-based consultancy, is also setting up Rs 250cr fund on behalf of a company backed by the Kerala government. Secura Investment Management manages the only other such real estate vehicle in the country. Essel's offshore vehicle may also get its investors to directly invest in real estate projects and not route it through the fund. Sources further revealed that Essel is looking to invest Rs 350cr from its domestic fund in various cities, including Delhi, Bangalore and Mumbai very shortly and has already invested a total of Rs 135cr in projects of realty developer Aristo in the Vile Parle area of Mumbai and Parvsnath's Exotica project at Golf Course Road in Gurgaon in the NCR region on the outskirts of Delhi.