APG is backing a residential property fund launched by Indian developer Godrej Properties.
Godrej鈥檚 fund management business has raised $275m (鈧�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, APG鈥檚 managing director and head of private real estate investments, said: 鈥淚n spite of a general slowdown in the asset class in the country over the last three years, our partnership projects have sold well.鈥�
APG鈥檚 strategy of partnering with the 鈥渂est local operators鈥� has allowed the investor to succeed in a 鈥渃omplex market like residential development in India鈥�.
Pirojsha Godrej, managing director and chief executive at Godrej Properties, said the second platform with APG would help the company attract 鈥渉igh-quality long-term equity investors鈥� to partner with.
鈥淭his,鈥� he said, 鈥渇its well with our strategy of deepening our presence across the country鈥檚 leading real estate markets while maintaining a capital-light development strategy.鈥�
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.
