A)Funding:1) First priority to the contributors to the fund
2) followed by other members of the PBAP
3) lastly to projects of non-PBAP members.
B) The investment committee of the fund, which comprises industry stalwarts, will assess the financial feasibility of projects under consideration.
C) The fund would invest up to Rs 5 crore per residential project in Pune to help the small developers to complete their projects quickly and raise standards.
D) PBAP Realty Investment Fund has a lock-in period of seven years. However, investors can transfer their stake to another PBAP member.
E) Aim to disburse funds within one month of the application.
F) Investment in projects that have time line of 18-24 months.
F) Once the project is ready, the investments will be diverted to some other project.
G) Returns will be shared by the investors.
Speaking at a press conference, Lalit Kumar Jain, President, PBAP said, "No one currently offers equity funding to smaller developers. Foreign and domestic equity funds look at large projects or projects with a scale of five lakh sq feet. We will look at providing equity to projects that small, from half an acre to two acres.
Ranjit Naiknavare , a PBAP member and managing director said, "The investment would be done in land cost as funding is easily available from banks for construction activities. The second and third series of this fund would be launched later."
PBAP has formed a Trust, which will have a separate company to run the fund activities. PBAP expects the fund to grow to Rs 300 crore by 2009 and to Rs 4,000 crore in another three years. "After Pune, we will cover Maharashtra and later spread to western India," Naiknavare added.
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Promoters and Builders Association of Pune (PBAP) Realty Fund PBAP Realty Investment Fund Funding press conference Lalit Kumar Jain, President, PBAP Foreign equity funds Indian equity funds Ranjit Naiknavare , M.D., PBAP Realty Investment Fund land Foreign Direct Investment in Pune real estate market Indian Real Estate Real Estate Investment Trust (REIT) D. Murali, The Hindu