U.S.-based investment bank Morgan Stanley has bought a minority stake in an Indian real estate company for US$152 million in what is billed as one of the biggest foreign investments in the country's property development industry, a news report said Thursday.
The investment in Mumbai-based Oberoi Constructions comes at a time when property prices in India are soaring.
Morgan Stanley has paid US$152 million (Ђ118 million) to buy 10.75 percent stake in Oberoi Constructions, whose major projects are located in Mumbai and the suburbs of New Delhi, the Hindustan Times reported.
Morgan Stanley could not be immediately reached for comments.
The news report quoted Anand Madduri, a Hong Kong-based executive of Morgan Stanley, as describing it as the single largest foreign investment in Indian real estate, where foreign capital was banned until last year.
"The closest is Farallon Capital's investment in Indiabulls at around US$143 million," Madduri said in the report, reports AP.
Farallon Capital, a hedge fund based in the U.S., took a 60 percent stake in Indiabulls Property last year.