Real estate developer Rustomjee Group on Thursday said it is setting up a development fund platform, Mt K Kapital, to fund residential and mixed-use development projects in Mumbai metropolitan region.
The fund size will be around $50-$75 million (Rs 380-570 crore), the company said in a statement.
The fund will invest in completed mixed-use commercial assets in various cities in the future.
The SEBI (Securities Exchange Board of India) filings for the CAT II AIF license have already been made, it said.
“With a strong focus on Mumbai Metropolitan Region, Rustomjee has delivered some of the best developments in real estate. 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 maximising value to the investors of the fund,” said, Boman Irani, Chairman and Managing Director, Rustomjee Group.
In the Mumbai metropolitan region, the Rustomjee Group has a development portfolio of 20 million square feet of finished projects, 9.2 million square feet of current development and 16.4 million square feet of planned development.
The fund will be led by Binitha Dalal and Abdeali Tambawala who brings in over 15 years of experience in finance and investments in the real estate sector, the statement added.
“We aim to bring in assets with a top line of $0.5 billion in the first fund,” Dalal said.
In Mumbai, the Rustomjee Group claimed to have developed residences in the premium and uber-luxury categories in the city's south and central areas, as well as the western suburbs.
It has a portfolio of completed projects totalling 20 million square feet, current development totalling 9.2 million square feet, and planned development of 16.4 million square feet.
In recent years, it has launched projects in Virar and Thane, marking the first time it had ventured outside of Mumbai. It currently has eleven residential developments and one business building under construction.
The real estate market has seen a flurry of activity in recent weeks following the interruption created by the Covid-19 pandemic.
This week, Canada Pension Plan Investment Board (CPPIB), among the most active alternative investors in India’s real estate sector, and Tata Realty and Infrastructure Ltd have announced a new 50:50 joint venture with an equity value of Rs 5,300 crore to develop commercial office space.
In the same week, global private equity investor Actis marked the final close of its Actis Asia Real Estate 2 (AARE2) fund at $700 million, which will invest in real estate that enables a new economy across Asia including India.
Last month, CPPIB partnered with Bengaluru-based realty firm RMZ Corp committing to invest around Rs 2,650 crore (around $355 million) to develop and acquire commercial projects across India.
