The developer Sobha has become a stakeholder in a new investment management business set up to fund large-scale property projects in India.
Sobha’s founder, PNC Menon, has also become a director of RootCorp, a company set up alongside the Indian finance house Nichani Group and property consultancy Savills.
It aims to take advantage of recent market liberalisation in India, allowing investment in large-scale property projects by funds, and is targeting institutional investors from the Middle East and Europe.
Its first fund, the India Debt and Yield Opportunities Fund, will invest stakes of up to 30 per cent in certain projects, and is aiming for returns on investment of 20 per cent.
This will be followed by future funds focusing on the Middle East property sector and renewable energy projects.
RootCorp said that the Indian property market is set to grow in size seven-fold by 2028.
Sobha Group was started as a painting and decorating contractor in Oman in 1976 and is now a multibillion dirham property development and construction group with projects across the GCC and India.
Mr Menon has a net worth of $1 billion, according to Forbes.
Sobha is currently building the $4bn Sobha Hartland scheme in Dubai and is a joint venture partner with Meydan Developers in the Mohammed bin Rashid District One project.
Mr Menon said: “Sobha delivers 7 million square feet of property each year in India alone, and we are developing property in excess of $14bn in Dubai. We have the very best land buyers and construction teams in the world and now we are going to increase our activity.”
mfahy@thenational.ae
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