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Kolkata, Oct 5 Infinite India, a real estate investment firm, is acquiring an undisclosed minority stake in Kolkata-based Shrachi Developers Private Ltd and Shrachi Realty Private Ltd for $50 million or Rs 200 crore.

“We will invest nearly Rs 100 crore each to acquire minority stakes in Shrachi Developers Private Ltd and Shrachi Realty Private Ltd. Shrachi Realty will primarily take up foreign direct investment compliant large-scale projects including townships and special economic zones. Shrachi Developers will undertake residential, commercial and retail projects in metros and smaller cities,” Mr Karthik Sharma, Chairman of Infinite India, said. Mr Sharma and Mr Vishal Kampani, Director of Infinite India, will join the board of Shrachi.

According to Mr Kampani, Infinite India has set up a $400 million (nearly Rs 1,600 crore) India-specific real estate fund, of which nearly $200 million (nearly Rs 800 crore) has been committed to several real estate projects across the country. The $50-million investment in Shrachi Developers, will be Infinite’s largest investment in the eastern region.

Infinite plans to remain invested in Shrachi for the next five to seven years and expect double-digit returns. “We would like to stay invested for next five to seven years. We ware looking at double-digit return. Typically, global investors have higher return expectations of more than 25 per cent,” Mr Sarma said.

On the exit route, he said that the company would consider the best option, including initial public offer. Shrachi Developers has completed five million square feet of real estate projects and has 22.5 million square feet of projects in the pipeline.

More Stories on : Mergers & Acquisitions | Real Estate & Construction

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