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Chinese conglomerate Fosun to invest $1 bn in Indian real estate

September 2016
Chinese business conglomerate Fosun is known to be in the process of setting up a real estate focused platform in India that would invest as much as $1 billion through equity transactions, as per reports.

Further, reports reveal that the platform is roping in Apurva Muthalia, CEO, Aditya Birla Real Estate Fund, as the head of India venture. And, the platform would operate like other global investors such as Singapore’s sovereign wealth fund GIC that picks up stakes in projects besides backing private equity (PE) funds as limited partners. This is similar to what large investors like GIC do. They put money in other funds and also make investments on their own when an opportunity arises. Fosun will have a similar play here; they are already looking at buying an asset in Mumbai, says reports.

The platform will initially lap up income producing rental assets and then set up a construction arm to develop large projects. It will also buy some development assets in the top cities that will be developed later when they set up a construction arm here to build large projects, according to reports. 

Further, the diversified business group is also in talks with PE firms such as Rising Straits Capital to back their funds as a limited partner, according to reports. Limited partners (LPs) are investors who pool in money for private equity funds managed by general partners (GPs).