Chennai: Cayman Islands-based real estate private equity fund which is focused on India, Red Fort Capital, has announced plans to invest $100 million in Chennai over a period of six months, spanning low to high-end residential and hospitality projects.

According to a press release by the company, Red Fort Capital has kicked off its activities in Chennai by acquiring residential land in close proximity to Ambattur, an industrial area north-west of Chennai and an emerging IT destination. Though usually considered part of Chennai, Ambattur technically belongs to the Thiruvallur district, closer to Anna Nagar.

Speaking at the announcement, Parry Singh, director of Red Fort Capital Advisors said, "We are extremely excited to announce our foray into the Chennai market. We have already acquired residential land near Ambattur and are looking to invest $ 100 million over a period of six months for housing projects in Chennai. We are already talking to developers and look forward to broadening our investment program here."

Talking about the future of real estate in markets such as Chennai, G B Singh, director of Red Fort Capital Advisors said, "We see a tremendous potential in the real estate sector in Chennai. The quality of infrastructure is continuously improving. Chennai has emerged as an IT hub with a host of software MNCs entering the city. Firms like Red Fort Capital are facilitating this growth by investing in the real estate sector in Chennai."

According to the press note, investors in Red Fort Capital include international governments, pension plans, insurance companies, foundations, and endowments. In 2007, the company claims to have already committed over $225 million to residential, township, and office projects in India, partnering with leading developers in India like the Bangalore-based Prestige Group.

The fund invests in developers and real estate projects, as well acquisitions of land for the development of residential, office, hospitality and infrastructure sectors. Investments, according to the company, usually take the form of joint ventures, equity, or mezzanine capital.