Real estate developer Rustomjee Group is setting up a Mumbai-focussed development fund platform. Valued at $50-75 million, the fund named Mt. K Kapital will be for residential and mixed-use.
In the future, the fund will invest in completed mixed-use commercial assets across various cities. The SEBI filings for the CAT II AIF License have already been made, claimed Rustomjee Group. Binitha Dalal and Abdeali Tambawala, founders of Mt. K Kapital, will lead the venture. The company aims to bring in assets with a top line of $0.5 billion in the first fund.
Boman Irani, Chairman and Managing Director, Rustomjee Group, said, “We are glad to create Mt. K Kapital platform and through this, we aim to leverage our development expertise and grow our presence in the Mumbai Metropolitan Region while maximizing value to the investors of the fund.”
Rustomjee Group has developed properties in Mumbai for the luxury and uber luxury category spread across south and central parts of the city and western suburbs. It has a portfolio of 20 million sq ft of completed projects, 9.2 million sq ft of ongoing development and 16.4 million sq ft of planned development.
In recent years, the group announced projects in Virar and Thane which became the first of its projects that took the group outside of Mumbai city. It presently has ten residential projects under it and one commercial property.
Binitha Dalal, Founder, Mt.K. Kapital quoted, “We believe that now is the right time to set up the real estate development fund platform. We will work towards creating true value for our investors and keep growing the scope of this platform in times to come. We aim to bring in assets with a top line of $0.5 billion in the first fund.”
Despite the severe disruption caused by the Covid-19 pandemic crippling rental incomes, the real estate sector has witnessed a bevy of activity in recent weeks.
On Tuesday, Tata Realty and Infrastructure and Canada Pension Plan Investment Board entered into a joint venture to develop and own commercial office spaces across India. The aggregate equity value of the deal is ₹5,300 crore.
This month, Bharti Enterprises and Brookfield entered into a joint venture agreement for four commercial properties aggregating 3.3 million sq ft at an enterprise value of ₹5,000 crore.
According to property consultant Colliers India, Institutional investments in real estate more than doubled to $1.1 billion from January to March 2022 compared to $0.5 billion a year ago during the same period.