New Delhi: Solitaire Capital India, SEBI-registered venture capital fund is launching its inaugural capital growth scheme christened Solitaire I, a close-ended offer, to raise capital via private placement.

The fund is offering 220 million units with a face value of Rs10 in two tranches, with a green shoe option to raise another 80 million units of Rs10. The first tranche is expected to remain open for subscription till November 2005.

The investment objective is to generate capital appreciation and income generation through investments in developing real estate projects, either solely or in joint venture with other real estate developers and landowners.

As such the scheme will invest predominantly in equity-linked instruments of development projects in residential, IT and commercial infrastructure.

Elaborating the investment strategy, Sanjiv Ahuja, CEO, Solitaire Capital Advisors Pvt Ltd siad out, "The Scheme would invest in townships, residential or commercial complexes, industrial and IT parks, or any mix of these. The investment commitment per project would vary depending on the risks involved, location and business plan of the project."

Sat Pal Khattar, chairman, "The government of India has formulated policies encouraging investments in the real estate sector from domestic as well as foreign investors / developers. The scheme will leverage this opportunity to fund profitable ventures in high growth cities in India" commented.

According to a press release, the administration and management of the fund will be in the hands of investors with international experience in private equity, finance, banking and real estate.

Investors who have been invited to participate in the scheme include Indian financial institutions; Indian corporates; high net worth individuals; as well as non-resident Indians (NRIs); and persons of Indian origin (PIOs).

The press release adds that the fund complies with all SEBI's regulations pertaining to venture capital.

Solitaire Capital, India, was established as a trust in March 2005 to invest in the real estate sector in India. It is a domestic venture capital fund (VCF) registered with SEBI under its venture capital regulations.