Tata Capital in talks with Oman’s SGRF for realty fund

From Business Standard

Tata Capital, financial services arm of Tata Group, is in talks with Oman’s sovereign wealth fund, State General Reserve Fund (SGRF), to raise money for its fund, said a source.

The source added Tata Capital could raise as much as $300 million (Rs 2,000 crore) from the Oman fund but this could not be verified. If it happens, it would be one of the largest in fund raising from an overseas entity in the country this year. Last year, Oman SGRF, with other investors, gave $375 mn to the offshore fund of HDFC Property Fund.

Tata Capital was also in talks with large US investors but this did not finally go ahead, said sources. E-mails to Tata Capital and Oman SGRF did not get a response. Tata Capital is also looking to raise $900 mn across its two funds, Growth Fund and Opportunities Fund.

Sovereign funds of Central Asia have been one of the biggest investors in funds floated by Indian property fund managers.

HDFC Capital Advisors, a newly floated asset management company of the HDFC group, had got approval of the Foreign Investment Promotion Board to bring in $400 mn. According to the buzz, Abu Dhabi Investment Authority (ADIA) committed this money.

ADIA had also committed $200 mn to Kotak Realty Fund to invest in Indian . It has a joint venture with Hines India Real Estate, the Indian arm of US-based property investment and management firm Hines, to invest in properties across north India.

Oman SGRF also has one more investment in India. Oman-India Joint Investment Fund (OIJIF) is a growth capital private equity fund, focused on investing in the mid-market segment. It works in partnership with Oman SGRF and State Bank of India.

The first tranche of OIJIF, worth $100 mn, already stands invested and discussion is on to finalise the investment for the second tranche of $300 mn, a report said recently. Oman’s SGRF has investments in a little over 25 countries worldwide, in a diversified portfolio of asset classes. The fund recently said it had generated an average annual return of 7.5 per cent since inception in 1980, up to December 2014.

It holds between 65 and 85 per cent of its assets in public markets and between 15 and 35 per cent in private markets globally.

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