Asset management firm Arnya RealEstates Fund Advisors has launched a category II alternative investment fund (AIF), named Arnya Real Estate Fund III – Preferred Capital, in partnership with real estate developer Casagrand, the company said in a statement.
The fund, which will pool in equity capital, has a target corpus of Rs 750 crore (around $79.4 million).
This is Arnya’s third fund. Founded in 2023, the firm has built a platform managing approximately Rs 3,000 crore across multiple real-estate strategies, with a focus on creating innovative investment products led by an experienced team of professionals.
The latest fund will focus on real-estate opportunities across Chennai, Bengaluru and Hyderabad, with investments ranging between Rs 75 crore and Rs 200 crore across approximately eight to ten projects.
Casagrand has a portfolio of over 88 million sq ft across across 180 projects.
"We see institutional capital playing an increasingly important role in the long-term growth of residential real estate. Our approach is to build enduring partnerships with institutional capital providers who share our focus on disciplined execution, transparency and aligned objectives,” said Arun Mn, founder, chairman and managing director, Casagrand Premier Builder Limited.
Sharad Mittal, founder and chief executive officer, Arnya RealEstates Fund Advisors, said that India's residential real estate sector has entered a structurally stronger phase, driven by regulatory reforms, increasing formalisation and sustained demand for organised developers. “At the same time, institutional investors are looking for investment strategies that offer an improved balance between risk and return. We are focussed on building structured investment products that seek to create a balance between risk and return, while aligning interests of both investors and development partners,” he said.
The firm believes that the launch comes amid continued momentum in India's residential real estate sector, particularly in Southern India. Chennai, Bengaluru and Hyderabad have emerged as some of the country's strongest housing markets, supported by infrastructure expansion, rising urbanisation and increasing consolidation towards branded developers. As developers pursue larger projects, the demand for flexible institutional growth capital has also increased, it said.
The fund is structured as an investor-first cash flow waterfall, where capital and returns are distributed to investors before residual distributions accrue to the developer.
Arnya expects the strategy to appeal to family offices, ultra-high net-worth individuals, institutions and sophisticated investors.
Separately, Casagrand has raised back-to-back funding from Arnya RealEstates Fund Advisors recently, which total to roughly Rs 300 crore.
Arnya, through its debut vehicle Arnya Real Estate Fund – Debt, has committed Rs 1,000 crore ($104.5 million) across 11 transactions spanning five geographies since its first close in September 2024. Total commitments are expected to reach Rs 1,200 crore, including direct investments.
Its portfolio includes projects of Casagrand, Maia Estates, Gami Group and Vaishnavi Group.
Separately, Arnya also has a platform partnership with Supreme Universal, which focusses on redevelopment opportunities in Mumbai. It recently hit the first close of the residential equity fund at Rs 1,030 crore and is expected to hit its final close soon. It is also in the process of floating its second debt fund, as reported by VCCircle.
Over the long term, the firm aims to build a full-stack real-estate asset management platform offering a diversified suite of strategies spanning credit, equity and rental assets.
The platform comes at a time when Casagrand is separately working on floating its initial public offering. It received regulatory approval for the IPO in June this year. The planned offering consists of a fresh issue of Rs 1,200 crore and an offer-for-sale portion of Rs 20 crore.
Casagrand also had secured the backing of private equity major Blackstone, which has one of the biggest portfolios of real estate assets in India, for two warehousing projects in November 2025.
