Berggruen Holdings Lines Up $300 M Investment for India

By: Propertiesmls

New York-based fund, Berggruen Holdings, which manages proprietary capital worth over $1.5 billion, plans to invest over $300 million in India over the next three years in hospitality, real estate, education, car rental, construction equipment leasing and logistics businesses.

Of this, the bulk-around $200 million-would go into real estate proj-ects spread across commercial, residential and retail spaces, while the remaining would be for setting up 40 budget hotels across the country. The fund also made a foray into equipment rental business by picking up around 90% stake in a Mumbai-based company for around $10 million. It also invested a similar amount for its car rental business.

For its foray into education business, Berggruen Holdings has partnered with a group of hospitality professionals to offer short and long term specialised programmes through 50 training schools across the country. Apart from the hospitality sector, the education business would also focus on offering specialised training in sectors such as retail, aviation and tutorials.

Kabir Kewalramani, managing director, BH Advisors, which manages Berggruen Holdings' investments in India, told ET that the fund has already made investments worth $60 million in the real estate space. It has recently co-invested in an 125-acre mixed-use property in Mohali, near Chandigarh, and is part of an IT park project in Hyderabad. A typical deal size in the real estate space is likely to range between $30-50 million. 'We hope to invest around $200 million in the real estate space in the next two years,' Mr Kewalramani said.

Earlier this year, the fund had announced plans to launch its budget hotel brand in India, Keys, with an investment of around $100 million over a three-year period across 40 sites. The first property is expected to be operational by the year end at Goa. Construction is currently on in at least three sites, including Trivandrum, Bangalore and Kovalum.

Berggruen Holdings is a private company, with interests in private equity, stocks and bonds, hedge funds, art and real estate, which manages funds of the Berggruen family.

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