Released on: September 12, 2008, 2:07 am

Press Release Author: varma

Industry: Real Estate

Press Release Summary: DHFL Venture Capital, the asset management arm of Dewan
Housing Finance Corporation (DHFL), is raising $250 million for its second
international realty fund.The fund will close in two tranches, with the first
tranche of $100 million expected to close in two months.


Press Release Body: DHFL Venture Capital, the asset management arm of Dewan Housing
Finance Corporation (DHFL), is raising $250 million for its second international
realty fund.The fund will close in two tranches, with the first tranche of $100
million expected to close in two months.

However, the company has not set any time-frame for raising the entire corpus of the
fund.Dewan Housing Finance Chief Financial Officer Prashant Chaturvedi said that the
money will be raised from offshore investors. “DHFL will have some share in the fund
depending on the what the National Housing Bank permits.” The company had launched
its first local fund of Rs 100 crore two years ago with DHFL investing Rs 35 crore
while the remaining Rs 65 crore was raised from banks and financial institutions.

The money from the local fund has been invested in real estate projects in
Hyderabad, Bangalore and Pune.In addition, Dewan Housing Finance, the parent entity,
is also looking to raise Rs 150 crore to bolster its operations. The fund-raising
may also be in the form of equity dilution. “We are considering various options. We
are in talks with potential private equity players and waiting for the markets to
stabilise,” Managing Director Kapil Wadhawan told Business Standard. DHFL, which
registered a compounded annual growth rate of 35 per cent during the last five
years, is hoping to increase its portfolio by over 20 per cent during the current
financial year. The slowdown is being attributed to the present economic situation
where high interest rates and property valuations are forcing many borrowers to
defer purchase of houses.“Over the next two-and-a-half years to three years, we are
targettng a balance sheet size of Rs 10,000 crore (compared with Rs 4,500 crore
now),” Wadhawan said, adding that the company intends to leverage its existing
network and focus on fee-based income.“Companies have seen the cyclical nature of
the business. So, they understand the challenges. Those who have deep pockets will
continue to operate in the market,” said.........

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