Goldman Sachs, Indian developer to invest US$250m in real estate

[NEW DELHI] Investment bank Goldman Sachs and Indian developer Nitesh Estates Ltd will together invest US$250 million in buying income-producing assets in the country, the companies said in a statement on Thursday.

The investment comes days after India eased tax and other regulations to enable companies to set up and list real estate investment trusts (REITs), giving debt-laden developers a fresh avenue to raise funds and kickstart development. "We believe the cyclical recovery in India has begun. The new government is focused on boosting potential growth and removing bottlenecks, which will kick start the investment and consumption cycles leading to enhanced GDP growth," said Sonjoy Chatterjee, chairman of Goldman Sachs India.

The first investment by the joint venture is the purchase of a million square foot shopping centre in the western city of Pune in which Goldman has invested US$37 million.

The US-based bank has invested US$2 billion in various sectors in India since 2006.

REUTERS