The Government of Singapore Investment Corporation (GIC) has agreed a IND1500 crore (€189m) joint venture with India’s Brigade Group to invest in the country’s residential sector.

As the Indian economy shows signs of improvement, Singapore’s sovereign wealth fund has chosen to invest in residential developments across the country’s southern cities via one of its subsidiaries.

The joint venture will invest in land for residential development, targeting high quality units.

Lee Kok Sun, GIC Real Estate managing director and co-head for Asia, said the firm “is a believer in India’s growth potential”.

The joint venture’s first project, Brigade Cosmopolis, is located in Whitefield, Bangalore.

Brigade, created in 1986, invests in residential, office and retail properties, as well as in the hospitality and education sectors. The firm is aiming to complete 30 million sqft of development in the next five years.

Earlier this year, the Canada Pension Plan Investment Board (CPPIB) made its first residential investment in India. CPPIB made the investment as part of a strategic alliance with India’s Piramal Enterprises. Each company agreed to initially invest $250m in rupee debt financing to residential projects across India’s major urban centres.

Dutch pensions group APG also began investing in Indian offices through joint venture partner Xander this year. It also doubled its stake in Indian hotel chain Lemon Tree.

India’s economy grew by 5.7% in the first quarter – its best quarter since 2012. The country is in the process of creating a REIT regime as it looks to attract more foreign capital. India’s Securities and Exchange Board (SEBI) approved the creation of REITs and infrastructure investment trusts last month.