Apollo Asia Fund to invest in Indian residential projects

The Singapore-based Apollo Asia Opportunity Master Fund plans to invest $10 million (Rs 40 crore) in developing residential projects in south India. Havenstead Developers, floated by an NRI and an Indian entrepreneur, along with Apollo Asia will invest in joint ventures with project funding institutions to promote the residential development.

Amol Karnad, managing director, Havenstead Developers Pvt Ltd, with which the fund has signed an agreement, said these joint ventures would be special purpose vehicles that are subsidiaries of Havenstead, which has sought Foreign Investment Promotion Board (FIPB) approval for the investment.

“These would be large projects in line with the FDI regulations and focus primarily on the southern markets,” Karnad said, adding that FIPB application is to acquire the status of foreign-owned Indian operating-cum-holding company for making downstream investment in construction.

Karnad, who himself is a founder-promoter of Alacrity Housing, a company that in the 1990s was among the market leaders and a major brand, said he had been taken on board for his experience in developing projects in the South. Karnad would be supporting Apollo Asia set up its business in India.

Alacrity itself is going through a financial crunch, which it is addressing independently. Karnad clarified that there is “no direct connection to Alacrity” and Havenstead. Havenstead has committed to making the investments and is now in the process of identifying the projects, locations and studying the market.

But as of now the progress is slow because of the market conditions. While no transfer of funds have taken place, a firm commitment is made, Karnad said.