The Triangle Real Estate India Fund, established by Old Mutual Investment Group Property Investments (OMIGPI) and ICS Realty of India with the aim of achieving superior returns in the world's fastest-growing economy after China, has secured an investment pipeline of projects worth more than US$400 million, it was announced on Tuesday.

The US$500 million fund, which is due to open on March 31, is initially aiming to capitalise on the rapidly expanding organised retail market in India, said Colin Young, head of institutional property investments at OMIGPI.

"Organised retail is wholly under-represented in India," he said.

"Retail is dominated by small operators, mainly owner-operated kiosks. Currently organised retail accounts for less than 4% of the US$400 billion market.

"The organised sector is expected to grow to 12% by 2010 as consumer preferences in a growing, urbanising population, half of which is under 25, increasingly shift to modern retail formats. Local retailers have ambitious expansion plans to take advantage of rising income levels, a growing middle class, and a move towards international lifestyle brands."

Young said that while the Triangle Real Estate India Fund would be weighted to retail, it would also take account of the growth in the commercial sector that was being driven by information technology and IT-enabled services

Deepak Premnarayen, co-founder and chairman of ICS, said the fund was well positioned to take advantage of the boom in Indian real estate that has been driven by positive economic developments and demographic changes.

"It is expected that the market capitalisation of the real estate sector will more than treble to reach US$50 billion by 2010," he said.

Source: I-Net Bridge