Realty consultant, Jones Lang LaSalle India’s (JLL) Segregated Funds Group made the final closing of its maiden real estate fund in the country by raising Rs 160.75 crore. When launched in 2012, the fund had a target corpus of Rs 300 crore and was planning to invest across 10-15 deals.
With a little over half the size raised in the final round the fund will be able to close five-eight deals compared with its initial target. Sources earlier indicated that JLL will mark the first investment from its maiden residential fund in a project in Bangalore. On an average the fund will invest Rs 25-30 crore per project.
Commenting on the first fund’s closing, Mridul Upreti, CEO, Segregated Funds Group, said, “We appreciate the commitment by investors in such market conditions. This is an important milestone for the group as it has reinforced belief in our strategy and we are now in a position to harness a significant market opportunity.”
The fund called Residential Opportunities Fund – I (ROF – I) had marked its first close in June last year at Rs 101 crore. The Segregated Funds Group is an entity set up by JLL to raise a series of funds with dedicated investment themes for the Indian real estate market. Sources indicate that after closing its residential fund it will look to raise a commercial fund.
According to the fund, a significant portion of the capital has been raised from a combination of high-net-worth individuals, institutional investors and family offices. Scheme ROF – I was amongst the first real estate funds to be registered with Securities and Exchange Board of India under the new Alternative Investment Funds regulations. The objective of the fund is to invest in small residential projects in prominent locations across seven cities in India, namely Delhi NCR, Mumbai Metropolitan Region, Bengaluru, Chennai, Kolkata, Hyderabad and Pune.
Axis Bank acted as the placement agent for Scheme ROF – I.
(Edited by Joby Puthuparampil Johnson)