BlackSoil Realty Fund – I, the maiden residential real estate focused fund of BlackSoil Realty Investment Advisors, is all set to invest Rs 25 crore ($3.7 million) in a residential project of Mumbai-based developer Ahuja Constructions, the company said in a statement.
The investment will go to an ongoing residential project O2 located at Sion (E) in Mumbai through a special purpose vehicle (SPV).
The deal marks the fourth investment of the fund. Earlier, it invested Rs 26 crore ($4.1 million) in a residential project of Mumbai-based developer Gala & Ghosheh Group through quasi-equity route. It also backed Mumbai-based Sheth Developers through a company holding level transaction.
Virendra Gala, partner, BlackSoil Realty Fund, said, “The price range is going to be competitive, considering the project offerings and amenities. The location will attract great demand in the current bearish real-estate market.”
The fund, which has a target corpus of Rs 250 crore including a green-shoe option of Rs 50 crore, recently hit first close at Rs 139 crore. It plans to exhaust the fund in 12-18 months. It primarily chases investments in residential projects in mid-market developers in Mumbai.
The way the fund is structured, it allows its limited partners (LPs) to co-invest in portfolio projects to ensure flexibility. The firm plans to float another realty fund once it has deployed the current fund.
The firm is promoted by Shashi Kiran Shetty, chairman and managing director of Allcargo Logistics and Gnanesh Gala, managing director of Navneet Education Ltd.
As for the realtor, it has developed 44 projects spanning Worli, Borivali, Chembur, Mulund and Navi Mumbai. It has a total of 7 million sq ft under construction across Mumbai.