Ahmedabad, Gujarat-based developer Shivalik Group, which launched its maiden real estate fund earlier this year, has marked its first close milestone by securing about half the targeted corpus.
The investment vehicle, Shivalik Investment Fund, was registered as a category-II alternative investment fund (AIF) with the Securities and Exchange Board of India in late January. It has a target corpus of Rs 150 crore and a greenshoe option of an equal amount.
The fund manager said Thursday it has mopped up about half the target corpus, or about Rs 75 crore, for the first closing. First close is a fundraising milestone after which alternative investment firms start deploying capital.
The fund will invest across real estate segments such as residential, commercial, and plotted development projects in Ahmedabad. The group said it has a strong deal pipeline for the fund and is in advanced discussions on identified deals.
“Ahmedabad’s real estate market is entering a transformative phase, driven by infrastructure development, rising incomes, and increased demand for premium residential and commercial properties. Shivalik Investment Fund is well-positioned to leverage these trends through our professionally managed fund, offering investors an opportunity to be part of Shivalik’s growth story,” said Piyush Kothari, Executive Director, Shivalik Investment Fund.
The fund’s limited partners include high-net-worth individuals, family offices and private institutions. Its minimum investment ticket size is Rs 1 crore with a tenure of seven years. The expected internal rate of return ranges from 15% to 24%, according to its website.
About 30% of the fund’s capital will be used to back projects not developed by the Shivalik Group. The fund may also use some capital to back startups.
A few other developers have also launched real estate AIFs in the recent past. VCCircle reported in March that Mumbai-listed developer Grovy India Ltd floated an AIF with a focus on investing in the South Delhi micro-market and making brownfield investments for the ownership and development of plotted luxury housing units.
The Grovy vehicle, Golden Growth Fund, was floated in February with a target corpus of Rs 200 crore ($24 million then) and an equivalent amount of greenshoe option. The fund has so far raked in about Rs 25 crore from investors.
