Birla Sun Life is set to invest Rs 250 crore in four real estate projects, three in Mumbai and one in Chennai, through its realty fund. The Rs 1,100 crore real estate fund has already invested Rs 225 crore in the sector and would be making the investment within three months, according to a senior company official. Birla Sun Life has recorded around 20 per cent return on earlier investment and hope to do the same with the new investment too, according to Investment Advisory, Birla Sun Life Asset Management. In Mumbai, the residential projects are in Western suburbs. The fund is also investing in other cities apart from Mumbai in what is seen as a strategy. The fund-raised from domestic market is predominantly invested in new residential segment in the country. The fund is also bullish on other cities like Pune, Bangalore and Ahmedabad. According to industry sources, experts are wary about investment in real estate especially in Mumbai, where prices have gone up by as much as 40 per cent since 2010. This is only lower (in percentage term) than Ahmedabad, where prices have increased by over 60 per cent in the same period. The investment in real estate is slow in Mumbai because there are no approvals from the government as yet. Also a lot of ambiguity surrounds some laws like floor space index (FSI) and also how the government itself is selling land parcels at steep prices.
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