APG is backing a residential property fund launched by Indian developer Godrej Properties.
Godrejβs fund management business has raised $275m (β¬244m) for its Residential Investment Program II vehicle, with APG as the lead investor.
The vehicle is a follow-on to the $200m residential development platform GPL set up with an APG-led investor group .
GPL will hold a 20% stake in GRIP II.
Sachin Doshi, APGβs managing director and head of private real estate investments, said: βIn spite of a general slowdown in the asset class in the country over the last three years, our partnership projects have sold well.β
APGβs strategy of partnering with the βbest local operatorsβ has allowed the investor to succeed in a βcomplex market like residential development in Indiaβ.
Pirojsha Godrej, managing director and chief executive at Godrej Properties, said the second platform with APG would help the company attract βhigh-quality long-term equity investorsβ to partner with.
βThis,β he said, βfits well with our strategy of deepening our presence across the countryβs leading real estate markets while maintaining a capital-light development strategy.β
Godrej said Karan Bolaria, appointed to head the fund management business, would manage the residential investment programme.
APG has also worked in a joint venture with Indian conglomerate Piramal Enterprises on an infrastructure mezzanine financing vehicle.
