Protego is to launch a $1bn (£488m) fund to undertake office development in India.
The fund will be a joint venture with Singapore-based commercial property group WIRE.
Charles Weeks, head of business development at Protego said: ‘What is happening in India at the moment is nothing short of astonishing.
International demand
‘From a real estate perspective there is huge primary demand from international corporates for quality office space, driven primarily by the cost benefits from outsourcing global IT and IT Enabled Services businesses to India, coupled with an extensive and highly educated labour force.’
Protego is seeking to raise $150m (£73m) in equity by February 2008, and further closings will aim to take the amount of equity raised to $400m (£195m).With gearing, this will take the fund to $1bn.
The Protego WIRE Indian Office Development Fund will look to undertake office development schemes in first and second tier Indian cities.
It will target international corporates with a requirement for offices of similar standards to those in the US and UK.
WIRE will be responsible for the day-to-day management of the projects.
High returns
The fund will be closed-ended, with a seven-year life span, and will target an internal rate of return of 25%.
On the back of the fund, Protego will look launch a standing investment fund which could purchase the developments at market value upon completion, and also buy other suitable investment properties.
