Eredene Capital, the AIM-listed Indian property investor, today announced that it had completed its second investment
Eredene has paid £6.65m (Indian Rupees 570.5m) to acquire a 30% stake in a special purpose vehicle proposing to develop a combined retail, office, hotel and residential complex close to the city of Indore in Madhya Pradesh.
The complex comprises a 1.16m sq ft (107,767 sq m) shopping centre, 343,750 sq ft (31,935 sq m) of offices, a 150-room four-star hotel and 500 homes.
Construction of the project is expected to commence in April 2007 and the last phases of the development are scheduled for completion in early 2011.
Eredene’s joint venture partner in the SPV is Entertainment World Developers Private, an Indian real estate development company headed by Manish Kalani.
Following this investment, Eredene will have invested approximately £10.88m of the £57.1m it raised at the time of its listing on AIM in April 2006.
Alastair King, chief executive of Eredene, said: ‘We are very pleased to announce our second investment. This is a further demonstration of our ability to deliver on our stated strategy of investing in growing Tier II and Tier III cities in India.’