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Ascendas to invest US$95m in Indian property developer

[NEW DELHI] Singapore's Ascendas India Trust will invest 6 billion rupees (US$95 million) over two years in Indian real estate company Paranjape Schemes (Construction) Ltd, the property developer said on Wednesday.

Ascendas will initially invest 2.6 billion rupees via listed non-convertible debentures and the remainder by taking a stake in a Paranjape unit developing a commercial project in the western city of Pune close to the financial capital of Mumbai.

Overseas investors are betting on a revival in India's commercial real estate space after the Narendra Modi-led government paved the way for listing Real Estate Investment Trusts earlier this year to help cash-strapped developers.

Foreign investors, including Blackstone Group, Goldman Sachs, and Singapore sovereign wealth fund GIC, had invested about US$1.5 billion in India's real estate sector as of Dec. 12, according to data from Venture Intelligence. About a third of that investment was in commercial real estate.