A $630 million Indian real estate investment fund that was launched less than 12 months ago has been closed. Earlier this week, SUN-Apollo India Real Estate Fund LLC formally ceased raising funds. SUN Group is a leasing Indian business and investment group owned chiefly by the Khemka family. U.S.-based Apollo Real Estate Advisors is a privately held real estate investment fund manager. The Fund will pursue development and investment opportunities in the Indian commercial real estate market.

The dramatic growth in India's economy is generating significant demand for all forms of real estate, ranging from offices to shopping centers to residential developments to hospitality well in excess of existing supply.

The Fund was launched in April 2006 and had its first closing in August. Investors include leading U.S., European and Middle Eastern institutional investors and high net worth individuals. The fund plans to develop a mixed-use IT park of with more than 5 million sq. ft. on a prime 58-acre site in Chennai.

“We are delighted to be partners with Apollo. The Khemka family have been operating throughout India for over 100 years and SUN is extremely positive about the prospects ahead,” says Uday Khemka, vice-chairman of the SUN Group. “We believe the fund to be uniquely well-positioned, in terms of both the high caliber of its Advisory Team and the strength and depth of its sponsor support.”