Rreef Alternative Investments, with head office in New York, is the largest business unit of its kind in the world owned by Deutsche Bank. On April 28 in Mumbai, the bank announced the launch of real estate and infrastructure investment business. Over the next three years, Rreef plans to invest over $1 billion (Rs 4,000 crore) in India in property (affordable housing, to begin with) and infrastructure (transport sector, in connection with road network). "We directly invest in projects around the world," said Kurt Roeloffs, CEO, Rreef Asia Pacific.
"Our long-term plans sense opportunities in other sectors like airports, railways, ports, power and water technology. India is an inviting market with a need of over $450 billion investment in infrastructure development," added Roeloffs.
Kishore Gotety, country head of Rreef India Advisors Pvt. Ltd, said, "We'll primarily invest in real estate and infrastructure in India. We're looking at business growth that is long term and sustainable. In our affordable housing scheme for middle-class, we want to keep construction costs very low."
In January this year, Rreef made its first property investment in India by taking a stake in Golden Gate Properties, a residential real estate company, for $70 million (Rs 2.70 billion).
In a separate development, Rreef acquired a 60 per cent equity stake in a JV with Nagarjuna Constructions-promoted NCC Urban Infrastructure to develop a mixed use project worth $400 million (Rs 16 billion) on 13 acres at Narsingi junction along phase-I of Outer Ring Road that links IT/ITeS zones of Madhapur and Gachibowli to new Hyderabad International Airport. The project will comprise over 5 million sq. ft. space for office, residential, retail and hospitality purpose, and is likely to be ready in 5 years.
With $91.3 billion (Rs 3.65 trillion) of its assets under management (the largest in the world), Rreef invests 85 per cent in property, 14 per cent in infrastructure and 1 per cent in private equity. The company has assets in 35 locations which are spread across US, Canada, Mexico, South America, Western and Eastern Europe, Africa, Australia, New Zealand and South-East Asia