Morgan Stanley to pump in 1$ billion in Indian real estate

New Delhi, July 26 (UNI) Close on the heels of investing Rs 300 crore in the Delhi-based Alpha G:Corp, Morgan Stanley today said it will further pump in one billion dollar by 2010, in the real estate business in India.

''We see India among the top three real estate markets in Asia.

We plan to invest one billion dollar in the sector in the next four-five years, as part of our India strategy,'' Morgan Stanley Executive Director and Head (Asia-Pacific) Zain Fancy told reporters here.

Alpha G:Corp Director and CEO S K Sayal said the company, as of now, is focussed in Tier II and Tier III cities in the North with its flagship residential project at GurgaonOne to be ready for possession in December 2006.

However, he declined to divulge the percentage stake of Morgan Stanley in the Indian company.

The company is currently executing 10 projects including townships, retail malls, office and residential developments across various cities in Northern and Western India including Gurgaon, Amritsar, Jaipur, and Ahmedabad.

''The 10-acre residential project in GurgaonOne was launched in February 2004 and achieved sales Rs 140 crore in just four months, even before the ground breaking was carried out,'' he said In addition, the other 2.06 acre Golf View Corporate Towers is 100 per cent leased out, Mr Sayal said.

He added that this partnership will allow Alpha to further capitalise on the growth opportunity and at the same time provide access to Morgan Stanley's world-class global real estate franchise.

Barring the company's two projects in Amritsar, all other projects are 100 per cent funded by the global real estate player.

On the 25 bps hike in the repo rate (RR) and reverse repo rate (RRR) by the RBI yesterday, he said it would have a only momentary impact on the real estate sector in the country.

''The hike in RR and RRR by the Central Bank in India will be faced by strong growth rate of the economy and increase in the per capita income of the middle class,'' Mr Fancy added.

On Alpha G: Corp coming out with an initial public offering, the company CEO said the possibility cannot be ruled out. ''We might think of an IPO in the next 2-3 years.'' Alpha G: Corp, a JV between Alpha and G: Corp, started operations in 2003. Alpha provides comprehensive property development and management services which include sourcing sites, planning, development, execution and marketing of real estate projects to clients for a revenue-based development management fee.

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