Improved sentiment gives fillip to money-raising by realty funds

Bindu D Menon Rajesh Kurup Mumbai | Updated on December 02, 2014 Published on December 02, 2014


Micro-markets, affordable residential housing popular as investment categories

Real-estate-focused funds are now back in the reckoning after a two-year lull and are raising money to invest in mid-segment projects across the country, banking on rising investor confidence and sentiments.

The funds and private equity firms are keen once again to provide capital for early stage investments in upcoming projects.

Ramesh Jogani, MD and CEO, Indian Property Advisors, said, “There was a lull during the past couple of years, even though many firms had raised funds during this period. The heightened activity is on back of the new optimism, coupled with the good investment sentiments. Most of the funds, which had raised and invested the amount, are now looking for raising the next tranche of funding.”

Indian Property Advisors has launched ₹350-crore (₹250 crore and a ₹100 crore greenshoe option) domestic fund 10 days ago.

Residential projects

Most of the funds are being launched for the mid-market commercial segment, he added. Interestingly, micro-markets and affordable residential housing are most popular as categories of investments.

ASK Property Investment Advisors said it is looking to invest in self-liquidating residential projects in Mumbai, Pune, Chennai, Benguluru, Delhi-NCR and Hyderabad.

Managing Director and CEO Sunil Rohokale said the company will stay focused on mid-segment residential projects.

The company expects to complete the fundraising in the next 12 months.

According to a Lias Foras report, 34 per cent of residential sales happened in the cost bracket of ₹50 lakh to one crore.

Piramal Fund Management has raised ₹500 crore for its ‘Indiareit Apartment Fund’, surpassing its initial size of ₹350 crore. The company is aiming a final close at ₹700 crore.

Khushru Jijina, Managing Director, Piramal Fund Management said, “With the Apartment Fund, we have consciously added another product to our suite of offerings.”

Published on December 02, 2014
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