Indiareit Fund Advisors, the real estate private equity arm of Piramal Enterprises, has marked an interim close of its sixth domestic real estate fund at Rs 300 crore.
The Domestic Scheme V of the fund has a targeted corpus of Rs 1,000 crore, and the scheme is the sixth in the series of funds raised by Indiareit which manages and advises a total corpus of Rs 4,343 crore across five earlier funds and two third-party mandates.
The fund is targeting structured returns and it has an equity trigger option too.
Khushru Jijina, managing director of Indiareit, said, “We are humbled with the momentum and support our Domestic Scheme V has garnered in the market. Despite a tough fundraising environment, the speed of the interim close is testament to the quality of our sponsor, track record of the platform and our constant endeavour to always act in fiduciary capacity for our ever-growing family of investors.”
The fund has already struck its first deal which is valued around Rs 100-150 crore where Piramal Enterprises has invested as of now; once the domestic fund is raised, it will take back the stake in the project. The investment has been made in a Mumbai-based residential project. The details of the developer and project area could not be ascertained. VCCircle had first reported it in April this year.
The fund’s city dedicated redevelopment fund called Mumbai Redevelopment Fund has also reached its targeted corpus of Rs 500 crore. The fund, which had raised Rs 400 crore till a couple of months ago, has been fully subscribed in the previous month, thereby reaching a final close. It has a niche strategy focused on slum and redevelopment projects in Mumbai and has already committed around 40 per cent of its corpus. Sources have indicated that apart from its first investment from the fund in Omkar Realtor, it has invested in Mumbai-based Ariisto Realty for around Rs 200-250 crore.
(Edited by Joby Puthuparampil Johnson)