Pune, June 11 (UNI) In a novel bid to provide micro-finance to small developers to raise standards in the real estate business, the Promoters and Builders Association of Pune (PBAP) here today launched the Realty Fund that will provide equity participation to developers of small projects.
Addressing a news conference, PBAP president Lalit Kumar Jain said the project is the first of its kind in India.
''No one currently offers equity funding to smaller developers.
Foreign and Domestic Equity Funds look at large projects or with a scale of five lakh sq feet. We will look at providing equity to projects that are small from half an acre to two acres. This can be termed as providing micro-finance for small estate projects. The Fund has been set up as a separate vehicle that can grow to manage larger funds and eventually can even consider getting listed as a Mutual Fund in terms of the SEBI guidelines,'' he informed.
The Fund has a total corpus of Rs 25 crore. The first series has been fully subscribed by about 50 of the PBAP members. The priority would be given to the contributors to the Fund, thereafter the members of the PBAP.
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