New Realty Funds to Boost Residential Realty

Vinod Behl

A host of newly launched Alternate Investment Funds are set to bolster residential real estate.

Arka Investment Advisory Services Private Limited (AIASPL) has launched their second AIF- Arka Hreem Real Estate Opportunities Fund in association with Rohan Builders as the operating partner through their financial services arm-Hreem.

The fund has a target size of Rs 500 crore and a green shoe option of INR 250 crore with a focus on equity investment in residential real estate opportunities. This launch follows the successful final closing of Arka’s maiden private credit fund- Arka Credit Fund 1 that has demonstrated strong performance with investment in real estate and allied sectors like steel, waste management, and transportation

A category -2 Alternate Investment   Fund- Shivalik Investment Fund (SIF), driven by a leading Gujarat developer- Shivalik Group, has successfully secured  50 percent of the targeted corpus of Rs 150 crore in its first close of its inaugural fund.

SIF with a target corpus of Rs 150 crore, has an option to raise an additional Rs 150 crore under the green shoe option. The fund is primarily focused on investing in residential real estate and plotted projects, besides commercial developments in Ahmedabad’s high growth areas.

Another Category-2 AIF – Golden Growth Fund, has secured Rs 25 crore in its first funding round concluded in mid-August. This initial capital infusion will be used to acquire a prime land parcel in South Delhi.

This acquisition is the first project under GGF’s strategic plan to develop high end residential properties in the region. The fund focuses exclusively on real estate opportunities in the Delhi region, particularly in South Delhi and Lutyens Delhi. GGF’s focus on brownfield projects gives it a distinct advantage over other realty funds which primarily target greenfield projects. Looking ahead, GGF anticipates continued growth and expansion as it finalises additional funding rounds and explores new investment opportunities.

Mumbai-based Rustomjee Group promoted Mt. K Kapital, a real estate focused fund management company, has raised over Rs 500 crore for its maiden AIF Fund- Mt. K Resi Development Fund Category 2 from marquee investors like SBI, ICICI Bank and other HNIs. Over Rs 300 crore of the funds have already been committed towards 5 projects in some of Mumbai’s prime locations. The identified projects include the Panorama in Pali Hill, Bandra West, Ocean Vista in Versova Beach, Andheri West, Cliff Tower in Mt. Mary Road, Bandra West, Dhuruvadi in Prabhadevi and Crescent in Pali Hill, Bandra West. The fund is now exercising its green shoe option, and plans to invest in 10-12 projects across the MMR.

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