Piramal Fund Management launches'Indiareit Apartment Fund'- a novel first-to-market fund strategy centered around institutional buying of residential units; collects INR100cr commitments in 10 days.
Maharashtra, July 23 -- The target fund size is INR350 cr(+a green-shoe option of a further INR350cr)with an average deal tenure of 2-3 years per transaction. IIFL Wealth Management Ltd. is acting as exclusive distributor for the first close.
The Fund is specifically targeted towards those individuals who, beyond a primary home, look to invest directly into real estate as an asset class. The Fund will therefore under write units only i.e. physical square feet rather than financial participation, whilst adhering to the basic tenets of a defined use of funds, appropriate security and monitoring as well as ensuring developer alignment and project completion-key risks that are tail buyer in the open market would want to address.
This all encompassing strategy helps create an aligned position i.e. a win-win for all stakeholders. For the developer, this enables them to advance construction and delivery of initial sales, facilitates an increase divisibility of site progress and also enables them, in certain instances, top anticipate in the upside beyond a certain price threshold. For the investor, the Fund enables them to access value deals in the market and participate in a secured position with the benefit of a highly attractive price point, diligence and structuring visa Vis an individual transaction. It also enables a quicker realization of attractive returns with smaller incremental price movement's when compared with retail participation at open market prices.
The Fund has already seed edits first transaction, a INR 50 cr investment in Mumbai and has identified a further pipe line of similar transaction seven as the fund-raising progresses.
Khushru Jijina, Managing Director, Piramal Fund Management said, "This Fund has been formed over many months of conceptualization and structuring. We are extremely heartened with the response having collected INR100cr in a matter of days. This offering adds to our existing bouquet of services i.e. structured equity, senior debt, and construction finance and furthers our engagement with development partner's to meet their requirements."
Published by HT Syndication with permission from India PRwire.
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