JPMorgan Asset Management will exit investments in Nitesh Group of Bengaluru, Assetz Property Group, Mumbai’s Vaswani Group and Pune’s Kolte-Patil Developers
In 2006, JPMorgan had raised $360 million for its maiden real estate fund called JPMorgan India Property Fund.
Two people aware of the matter told Mint newspaper that JPMorgan, which halted its real estate investments in India last year, saw the exit of Chanakya Chakravarti, Managing Director of Global Alternatives.
Unlike other real estate funds which sell all investments from previous funds to a single buyer, JPMorgan is planning to sell them in separate deals and will choose bankers for each mandate,
“JPMorgan Asset Management has a long-standing presence in Indian real estate, with an established on-the-ground team in place since 2006. We continue to be focused on driving results for our clients, maximizing investment performance and providing exceptional client service,” said a JPMorgan spokesperson.
“Most of the historical investments in residential asset class made during 2006-07 are equity investments which are still struggling to make exits given the way market evolved — global meltdown, developers unable to complete work, etc.,” said Shashank Jain, partner, transaction services, PricewaterhouseCoopers (PwC) India.
Besides JPMorgan India Property Fund, many other funds which deployed money since 2006-2007 are also looking to sell entire portfolios to potential buyers and have given mandates to investment bankers.