Reliance AIF Asset Management Co. Ltd has raised about Rs 400 crore ($65 million) as the first close of its maiden real estate fund. The fund has invested the capital across four deals—one residential project each in Mumbai and Bengaluru and two in Chennai, a company spokesman said.
Reliance AIF is a 100 per cent subsidiary of Reliance Capital Asset Management Ltd and is raising a total of Rs 1,000 crore under Reliance Yield Maximiser Alternative Investment Fund Scheme 1 (RYM AIF) that was launched in early August this year.
The fund will raise Rs 200 crore more, in a second interim close, within a couple of months, Mintfirst reported.
The fund aims to achieve its target corpus of Rs 1,000 crore by March, 2015.
RYM AIF fund is a 54-month closed-ended real estate focused fund and aims to generate an IRR of 20-24 per cent on the underlying investments.
Reliance’s new fund primarily invests in secured debentures and focuses on residential projects that are in an advanced stage of construction development, across major metros, including Pune and the National Capital Region.
The size of each transaction will be Rs 40-120 crore.
Real estate investors have witnessed a rise of many funds on the road to raise capital. Essel Finance is looking to raise an offshore fund. Amplus Capital is also in the process to raise a $90 million offshore fund this year. Milestone Capital will be raising a Rs 500 crore realty fund from domestic investors.
ASK Group's real estate investment arm ASK Property Investment Advisors Pvt Ltd launched a Rs 1,500 crore ($244 million) domestic fund named ASK Real Estate Special Opportunities Fund II.
Capitedge India Investment Advisory, a realty fund and asset management firm floated by six former members of Indian realty team of American banking giant Wells Fargo, is coming out with a residential properties-focused fund in India.
A string of PE investors has managed to raise funds to invest in Indian real estate. Indiareit, Jones Lang LaSalle India and ASK Group, among others, have raised capital from both onshore and offshore markets.
Early this year IDFC Alternatives and Motilal Oswal Real Estate, the real estate arm of Motilal Oswal Private Equity, hit fundraising milestones. Most recently Piramal raised Rs 500 crore in interim close of apartment bulk-buying fund.
(Edited by Joby Puthuparampil Johnson)