Mumbai, Aug. 21: JP Morgan Asset Management today announced the closing of the JP Morgan India Property Fund with more than $360 million in capital commitments from institutional and high net worth investors from the US, Asia, Europe and West Asia.

The fund was set up to tap the India real estate market since foreign investment restrictions were eased, focuses on the development of new properties in a broad range of real estate assets, including the office, residential, industrial/warehouse, retail and hospitality sectors.

Through joint ventures with local developers, JP Morgan Asset Management will target Mumbai, Bangalore, Chennai, Calcutta, Hyderabad, New Delhi and Pune with selective investments in other cities that are emerging as key economic centres at the national or regional level, including Surat, Vizag and Nagpur, a statement said.

The fund will function through the advice and support of a group of senior JP Morgan investment professionals, including Mumbai-based managing director Arvind F. Pahwa and other senior professionals based in New York and Luxembourg.

“India is experiencing extraordinary growth in real estate demand and is arguably one of today’s most compelling real estate investment opportunities. Investors are now seeking higher returns from emerging markets like India where there is enormous potential for growth and superior returns. We are not surprised at the level of interest in this and other markets with similar demographics and economic drivers”, said Joe Azelby, global head of JP Morgan Asset Management — Real Estate.

Azelby said they have been able to leverage JP Morgan’s more than 60-year presence in India and strong relationships. “With the strength of our global real estate investment management platform, we have been able to establish this fund and experience first hand, India's growth and demand for real estate. The India market is at the beginning of a huge expansion phase in real estate and we are excited to be there at the beginning. For us the next steps will be to partner local developers to negotiate high quality real estate opportunities for our investors,” he added.