Anand Jain promoted Urban Infrastructure Opportunity Fund (UIOF) with an investment of Rs. 1,102-crore has concluded 13-real estate deals, just in the past few months. Picking up equity varying from 10% to 50% in projects across India, UIOF is backed by Reliance Industries (RIL) amongst others. In addition, with a fund raising target of Rs. 5,000-crore UIOF has managed to raise Rs. 2,221-crore from a clutch of brokerages, high net worth individuals and corporates, to invest in real estate and projects in special economic zones (SEZs).

"The fund has adopted a fairly de-risked investment strategy by spreading its resources across different segments of the real estate sector in various cities across the country," UIOF sources are keen to inform.

The group's investments are spread across various realty segments like commercial, IT park, hospitality and retail in cities, such as, Mumbai, Chennai, Hyderabad, Nashik, Jodhpur, Pune, Mohali, Bangalore and Nashik.

When contacted, Tushar Sarda (UIOF Chief Investment Officer), while declining to give specific details on projects the fund has picked up equity in, stated many projects were in the infancy stage, while land acquisition was going on for other projects.

However, it is learnt that UIOF has picked up majority stake in three commercial and retail projects in Mumbai, two hospitality and commercial projects in Chennai, two residential and commercial projects in Bangalore and a residential and retail project in Pune.

Of its total investment, UIOF has 27% exposure in Bangalore, with 24% investment in Mumbai. In the cities like Panchkula, Chennai, Hyderabad and Nashik, the fund has investment exposure of 11%, 10%, 9% and 8%, respectively.

Industry sources confirm the leading investors in UIOF include the Enam group (Rs. 500-crore) and Hemendra Kothari, Vice-Chairman - Merrill Lynch International (Rs. 75-crore). Reliance Industries (RIL) on its part is believed to have invested about Rs. 200-crore.

Sources claim Anand Jain is promoting the fund for investing in real estate developments and SEZ projects across the country, targeting a 20% internal rate of return and will use opportunities thrown up by the RIL proposed SEZ. A realistic target, even UIOF investment managers are targeting a 20% return for their firm, while predicting a 9% return for outside investors.

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