U.S.-based venture capital firm Warburg Pincus is launching a joint venture with Indian hotel chain company Lemon Tree Hotels Ltd to construct full-service accommodation for students and young working professionals.
The JV company, Hamstede Living Pvt. Ltd, will invest as much as 3,000 crore rupees ($429 million) to construct and lease short and long-stay real estate projects.
Initially, Warburg Pincus and Lemon Tree will infuse $214.1 million in equity over a period of time and an extra equal infusion at the option of the partners to develop rental housing projects.
Warburg Pincus revealed that it will form the JV via its affiliate, Magnolia Grove Investment Ltd, and will hold a 68 percent stake in the JV while Lemon Tree will own 30 percent.