DELHI-Morgan Stanley Real Estate has invested Rs3 billion ($65 million) in Delhi-based real estate development and management company Alpha G:Corp. The partnership "will allow Alpha to further capitalize on significant growth opportunity and provide us access to Morgan Stanley's world-class global real estate franchise," Alpha managing director Colonel R.S. Sodhi said in a statement. The relaltionship, he added, "is also an important step in the diversification of our business. We plan to utilize our partner's relationships and global platform to expand our business strategically."
For Morgan's part, "India represents a compelling real estate investment opportunity," said Zain Fancy, executive director at Morgan Stanley, "and this investment is a continuation of our India strategy." Established in 2003, Alpha is currently developing townships, retail malls, office and residential schemes across various cities in Northern and Western India including Gurgaon, Amritsar, Jaipur, Ahmedabad and others. Morgan, since 1991, has acquired $87.7 billion of real estate assets worldwide and currently manages approximately $51 billion in real estate assets on behalf of its clients.
Early last year, the Indian government relaxed the restrictions on direct foreign investment in townships, housing, built-up infrastructure and construction-development projects. The changes gave foreign investors the green light to set up wholly owned subsidiaries in India by investing a minimum of $10 million or enter into joint ventures with Indian partners by investing not less than $5 million. Since the government relaxed the rules, foreign investors have poured about $10 billion into the India market, according to Cushman & Wakefield research.
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