The Government today allowed Orange Realty to set up a wholly owned subsidiary in India. The company has already received Rs 2,051 crore from IREO Investment Holding Iii, a Mauritius-based fund focused on setting up SEZ, IT/BPO Parks, and development of real estate projects.
An IREO spokesperson said that Orange Realty’s application to Foreign Investment Promotion Board was for creating a subsidiary. “Orange Realty has a mixed-use project in Gurgaon. The latest approval sought for the step-down subsidiary of Orange Realty, is more of a blanket nod and specifics are yet to be decided,” he said.
The funds injected by Ireo Investment Holding III have flowed into Orange Realty since 2005, when the latter started its operations. Orange Realty is a subsidiary of IREO Investment Holding III Ltd. However, not many in the real estate industry seem to have heard about the company in spite of over Rs 2,000 crore of FDI inflow that has already come in. In its application to FIPB, the Delhi-based firm had sought to “acquire the status of foreign owned Indian holding-cum-operating company” and to make downstream investment in companies engaged in real estate activities and development of SEZs.
The change in status from operating company to operating-cum-holding company requires FIPB nod. The FIPB, in its meeting on January 9 recommended that the proposal be placed for consideration of the CCEA, as “the initial investments inflow for making the holding company exceeded Rs 600 crore.”
Briefing the media after the meeting of the Cabinet Committee on Economic Affairs (CCEA) on Wednesday, the Home Minister, Mr P. Chidambaram, said, “The investing company is by the name of IREO-III... That company has a large of number of well-known investors. That company is now investing in Orange Realty.”
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