Madison to invest in Indian residential projects

November 2012

To invest in residential projects Madison India Real Estate Fund is planning to raise $100 million from overseas investors. The fund is expected to get closed in a couple of months. Madison India Real Estate Fund is a Mauritius-based investment company focused on making investments in the emerging real estate market in India.

The investors in the company are institutions and high net worth individuals from the UK, the US and Australia. This is the second fund by Paracor Capital advised – Madison India, earlier it raised $50 mn in 2007. The first fund was focused toward investment in hotels & hospitality space, commercial township, while this fund will focus on residential projects only. The fund will invest around $15 mn in six residential projects.

Madison India’s first fund had been fully deployed with six deals - four in the residential sector and two in hospitality. In its last transaction, the fund invested $6 mn in a plotted development in Bangalore by Shriram Land Development India.

This week, Madison India sold its stake in Daman Hospitality to Delta Corp., an existing stakeholder. This April, Paracor Capital invested $20 mn in two residential projects of Chennai-based real estate developer Hallmark Infrastructure.