The investment would be used by Gaurs Group to pace up the construction work at two of its projects in Greater Noida West.
REIT provides an exit and brings in governance and transparency, he said.
The real estate sector, which has been struggling with weak demand and stagnant prices for years, has received another blow with the liquidity crisis at non-banking financial companies (NBFCs).
Hines will initially own 33% equity share of the JV with an option to increase stake up to 49%. It has invested around Rs500 crore in the first tranche.
The $400 million India Office Assets Fund I is anchored by a subsidiary of UAE-based sovereign wealth fund Abu Dhabi Investment Authority (ADIA).
The JV comes close on the heels of the Morgan Stanley fund picking up a majority stake in Pune-based warehouse and logistics park developer KSH Infra Ltd for around ₹350 crore.
In February 2017, PEL had announced a strategic co-investment fund with Ivanhoé Cambridge to provide long-term equity capital to select developers.
Singapore’s GIC, Temasek Holdings, Mapletree Investment and CapitaLand have invested across asset classes.
In the last 20 years, Ascendas-Singbridge has built 16 million sq. ft of office assets across information technology (IT) parks in six cities in India.
Mapletree has just concluded the acquisition of Chennai-based information technology park SP Infocity for around ₹2,400 crore, marking its return seven years after it had made its first and only investment in the country.