Sundaram Alterantes is planning to raise up to Rs 2,000 crore real estate fund by March this year. The alternative investment arm of the Sundaram Finance group said on Monday it has already raised Rs 1,000 crore in the SA Real Estate Credit Fund V over the last three months and aims to raise another Rs 500-1,000 crore by March, as per an official statement.

“As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships,” SA’s Managing Director Karthik Athreya said, PTI reported.

SA claimed it to be the first ESG-aligned offering in the realty sector and added that it attracted commitments from insurance companies, family offices, corporate treasuries, and ultra-high-net-worth investors besides the sponsor commitment from the group.

The fund will be deployed in performing credit opportunities in the residential sector, the statement said, adding that SA prioritises capital protection and downside risk management through conservative loan-to-value structures and collateral coverage.

Since 2017, Sundaram Alternates has raised over Rs 3,800 crore across five real estate credit funds, delivered 18-19 per cent in internal rate of returns and maintained a ‘zero capital loss’ record even in headwinds like NBFC liquidity stress, RERA and GST implementation, and the Covid-19 pandemic.