GIC, Ascendas set up Indian property fund

GIC, Singapore's sovereign wealth fund, and Ascendas plan to invest as much as $600 million in Indian real estate to meet rising demand for commercial property.

The companies set up the Ascendas India Growth Programme with a target size of $600 million with GIC being the principal investor, they said in a joint statement yesterday. The fund will invest in business space in Bangalore, Chennai, New Delhi and surrounding areas, Hyderabad, Mumbai and Pune, according to the statement.

Institutional investors are increasing allocations to real estate as part of efforts to diversify portfolios and boost returns. The value of investments by state funds such as GIC in alternative assets including property rose 26 per cent in the past year, Invesco Ltd said in September, citing a survey of 29 sovereign funds controlling about 80 per cent of the assets.