DHFL plans Rs. 250cr for realty

The advisory, management and consultancy services provider DHFL Venture Capital has decided to raise Rs. 250 crore from financial institutions (FIs) and high net worth individuals (HNIs) in the current fiscal from the domestic markets to fund real estate projects in tier-II and tier-III cities.

The Vice-Chairman and Managing Director Kapil Wadhawan in a recent statement said that the company which was set up in 2005 in its maiden fund raising venture had raised Rs. 100 crore in 2006 domestically from leading financial institutions and banks. The fund has performed well with over 35 per cent rate of return (ROR).

In the forthcoming fund, the company is targeting 30 per cent internal rate of return (IRR) and the funds would target both individuals and developer for disbursement. The IRR is a capital budgeting metric used by firms to decide whether they should make investments. It is also called ROR, an indicator of the efficiency or quality of an investment, he added.