American Govt’s OPIC Commits Funds For Two Indian Funds

Overseas Private Investment Corporation, U.S Government’s development finance institution has committed $135 Mn for investment funds in India.

It has agreed to provide $100 Mn for IndoSpace Logistics Park II, second logistics park of the JV – Realterm Everstone and another $35 Mn for the BanyanTree Growth Capital II fund, a SME focused investment unit with a target capitalization of $175 Mn.

IFC was also planning to invest in BanyanTree Growth II fund.

This second fund is planned to develop logistics parks in Bagalore and in outskirts of Mumbai with an own and manage structure.

Realterm Everstone is a JV between Realterm Global, North American industrial real estate investment firm and Everstone Capital, formed to develop the industry-specific real estate facilities in India. It has its first fund, IndoSpace Logistics Parks with a corpus of $241 Mn.

Everstone Capital is a global PE firm with AUM of over $1.5 Bn and has two realty focused funds comprising of Horizon Realty Fund LLC, a $350 Mn fund closed in 2006 and with a goal to invest in retail-led real estate developments in Indian metro cities and the other being IndoSpace Logistics Parks.

OPIC, setup in 1971 as an agency of the U.S Government mobilizes private capital to invest in developmental activities around the globe including over 150 countries and current investment amounting to more than $200 Bn in over 4000 projects.

Current OPIC Asia Projects (Excluding India)

This week Everstone Capital announced intentions to acquire 35% stake in S. Chand and Company Ltd. by investing around $30 Mn and also planned to investR150 Cr in Hinduja Leyland Finance for a 10% stake earlier this month.

In May it bought a majority stake in Helion backed R&R Salons Pvt. Ltd., which runs the YLG salon chain in Bangalore.

Among the logistics players, Future Group’s consumer logistics arm Future Supply Chain Solutions was planning to raise R100 Cr of private funds this year, Japanese logistics firm SG Holdings invested R90 Cr in Sindhu Cargo Services and its sister concern Sunlog Services for a 40% aggregate stake in July.

Also Morgan Stanley hiked its stake in Gateway Distriparks by investing R12.45 Cr in June this year.