IDFC Alternatives, the private equity (PE) arm of infrastructure-focused lender IDFC Ltd, has secured Rs 475 crore (about $71 million) under its real estate-focused IDFC Score Fund, as per a press statement.
The PE firm is looking to raise a total of Rs 750 crore (nearly $112 million) under the fund.
The fund, which has a fixed tenure of five years, will invest through structured debt in mid-income housing projects that have secured approvals.
“This is our third real estate fund and the fact that a large portion of the capital has been raised from existing investors speaks for itself. We expect to complete the balance fundraising shortly and hope to deliver a superior investing experience to our investors,” Ritesh Vohra, partner – real estate, IDFC Alternatives, said in the statement.
The fund will be investing in residential projects across top seven property markets—Mumbai, Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad and Kolkata—and is expecting gross annualised returns of 20-21 per cent.
IDFC Alternatives had raised IDFC Proprietary Office Fund with a corpus of Rs 700 crore in 2011 and then raised another Rs 750 crore through IDFC Real Estate Yield Fund in 2014.
While the IDFC Real Estate Yield Fund has committed its entire corpus, IDFC Proprietary Office Fund exited from its investments by 2014, generating a 22 per cent internal rate of return (IRR).
IDFC Alternatives has total assets under management (AUM) worth Rs 17,000 crore.
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