Deutsche Bank's arm to foray into India's realty market with $1 billion investment

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US-based private equity real estate firms Walton Street Capital and Starwood Capital and a slew of Middle East-based real estate developers are also in the fray, having already tapped the Indian market and partnering with local firms in developing multi-billion dollars residential and commercial projects over the next five years.

RREEF's announcement comes close on the heels of an alliance formed between the State Bank of India and Australia's Macquarie Capital earlier last month to raise $2 billion to fund infrastructure projects.

Lack of adequate housing in India has led to a sharp rise of real estate prices in India over the last few years, drawing a large number of foreign participants including private equity funds to India.

The India Brand Equity Foundation estimates that by 2010, the information technology (IT) sector alone will need 150 million square feet of space across major cities, and further estimates that in the residential sector, there is a housing shortage of 19 million units across the country.

While the Indian government has estimated that the nation will need about $500 billion between 2007 and 2012 to modernize its infrastructure, global consultancy firm Ernst & Young reported last November that private investment to build India's infrastructure will top $100 billion by 2012.

ABOUT RREEF

RREEF Alternative Investments is the largest alternative investment manager in the world, managing $91.3 billion of assets globally. Its business in the Asia-Pacific region has grown considerably over the last two years, and now comprises for 15 percent of total assets under management.

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