Gazit-Globe to invest $110m in Indian real estate fund

The $750 million Hiref International fund is backed by Indias Housing Development Finance Corporation.

Gazit-Globe Ltd. (TASE: GLOB) will invest $110 million in Hiref International LLC, an Indian real estate investment fund registered in Mauritius. Hiref has received $750 million in commitments.

Indian housing finance company Housing Development Finance Corporation Ltd. (HDFC) (BSE:500010) established Hiref International and backs it. HDFC will make a co-investment of $50 million alongside Hiref. The fund will have a nine-year lifespan, with two one-year options to extend.

Gazit-Globe is making the investment in Hiref International through a subsidiary that will be one of the four anchor investments in the fund. This will give the company a seat on the funds investment and other committees as well as co-investment options at the companys discretion in the real estate projects that the fund invests in.

Hiref International will make direct and indirect investments in real estate projects in India, including in special economic zones (SEZ), technology parks, industrial parks, hotels and other recreation projects, commercial and entertainment centers, and residential projects.

Gazit-Globe said the investment was part of the companys strategy, decided on in January 2006, to expand its business in Asia.

HDFC was founded in 1977 with the aim of financing the development of urban properties in India. Its chairman is Deepak S Parekh, managing director is Keki. M. Mistry, and executive director is Renu. S. Karnad.

Published by Globes [online], Israel business news - www.globes.co.il - on August 26, 2007

Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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