Indiareit Fund Advisors, the real estate dedicated fund promoted by Piramal Enterprises, has pruned the target size for its offshore realty fund by around a third and is now looking to raise $250 million, said a senior official of the company. 

The realty fund which is looking to mark the first close of its offshore fund at $75 million by March-April 2014 was earlier looking to raise up to $350 million through its first overseas outing. The fund house hopes to complete the fundraising process next year. 

Earlier last month, Khushru Jijina, managing director, Indiareit, had told VCCircle, “We finished our Asia road-show recently and three large limited partners are doing due diligence right now and we are confident of making the first close by March-April. We will raise $75 million for the first close.” 

The realty investment firm has been meeting large pension funds and sovereign funds to raise the capital. It will start its road-show for the European and US markets this month.

Indiareit’s offshore fund will invest in residential projects and it has been showcasing projects to its prospective investors to raise money for the fund.  The realty PE firm will use money from the offshore fund to jointly invest with the domestic fund that it is trying to close in the next few months. In November, the fund had got commitment for close to Rs 800 crore for its domestic scheme V and is expecting to make a final close at Rs 1,000 crore.

(Edited by Joby Puthuparampil Johnson)

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