DHFL teams with Redwood to raise $200m

The investment firms have partnered to target private equity investments in the Indian logistics and warehousing sector.

DHFL Venture Capital and Redwood Group are forming a joint venture to invest in logistics-driven warehousing, Arun Goel, chief executive officer of DHFL Venture Capital, said in an interview.

While the fund is a long term business plan and not dependent on a single fundraising, it could raise about $200 million globally, Goel said.

The joint venture will leverage Redwood’s global client relations and expertise in development and leasing as well as DHFL’s Venture Capital’s local access and team, according to a statement from the firm. It will also partner with local and regional developers.

Warehousing logistics: new fund focus

The partnership reportedly aims to raise between $150 million and $200 million from overseas investors and between INR1.5 billion ($31 million; €22 million) and INR2 billion from domestic investors, India’s Business Standard reported.

Last month, another Indian company teamed up with foreign firms to raise a private equity fund. UTI Asset Management, one of India’s largest asset management companies, partnered with Germany’s HSH Nordbank and Kuwait’s Noor Financial Investment to raise $500 million for the India Infrastructure Development Fund.

DHFL Venture Capital is currently managing Dream Fund 1, a private equity real estate fund launched in 2006. The firm is owned by Dewan Housing Finance, India’s second largest private housing finance company.

The Redwood Group is an Asia- and Europe-focused real estate investment firm. In India, the firm plans to develop logistic parks in cities including New Delhi, Mumbai, Chennai, Bangalore and Pune. It expects to launch two park projects in the country by the third or fourth quarter of 2009. The firm has offices in Tokyo, Seoul, Singapore, Mumbai, Barcelona, Luxembourg, London and Moscow.