A city-based group of realtors has launched a Category-2 Alternate Investment Fund (AIF), one of the first of its kind, to finance real estate projects in Gujarat, Pune, Mumbai and Bengaluru in the commercial and industrial space.
Set up by Purple Elephant Realty Advisors LLP, the SEBI-approved Purple Elephant Realty Fund will have a fund size of ₹60 crore with a greenshoe option of ₹40 crore. The minimum ticket size per transaction will be ₹10-15 crore with an investment period of 24-40 months.
“The fund will have primary focus on Gujarat with prominent cities of Ahmedabad, Surat and Vadodara,” said Monil Parikh, Managing Partner of the company.
“There will also be an option to invest in projects coming up in Pune, Mumbai and Bengaluru. The minimum capital commitment required to invest in the fund is ₹1 crore and the expected return on the investment is likely to be around 20-25 per cent over a period of 18-24 months post final closing of the fund,” Parikh added.
The recently-launched fund has already received commitments worth ₹10 crore from three investors, Parikh informed.
“During the entire investment process, there will be regular market surveys, close monitoring to identify potential projects with a strong income stream and strategised exits,” said company CEO Anup Shah.
The fund offers prospective investors an opportunity to initiate pooled investments over a diversified geography.