Sundaram Alternates Assets (SAA), the private equity arm of Sundaram Finance Group, plans to raise about ₹1,000 crore from global investors to fund green real estate projects in India.
"This move reflects our commitment to build on our own track record, depth of underwriting and risk management skills in the ever-evolving landscape of the Indian real estate credit market," Sundaram Alternates Assets Managing Director Vikaas M Sachdeva told PTI here.
“In the past year, SAA has not only re-engineered its high-yield credit funds to generate real alpha from its performing credit business but has also adopted a robust ESG and climate impact framework as a significant investor initiative,” he said.
The firm is currently in the process of raising money from global investors, including NRIs in the Gulf region through its Series IV real estate credit fund.
"We are expecting to close the fund (Series IV real estate credit fund) at between ₹1,000-1,200 crore to fund green real estate projects," SAA director (alternative credit) Karthik Athreya said.
“A lot of investors in the GCC region, North America, and Southeast Asia have shown keen interest in the fund,” he said.
Sharing the past record, Athreya said, the firm has raised and deployed about ₹3,000 crore in its private credit business over the last 5-6 years.
“Past funds have consistently delivered 18-20 per cent portfolio returns and are currently generating about 17 per cent gross investor returns,” he said on the sidelines of the Dubai Alternative Investment Summit. The credit funds boast over 500 investors across HNIs, family offices, and corporate treasuries.