Real estate-focused fund management firm Mt. K Kapital has secured ₹350 crore (about $43 million) from anchor investors State Bank of India, Famy Care, Rustomjee Group and other undisclosed high net worth individuals.
The fund has raised capital in the Mt K Resi development fund, which is a category II alternative investment fund, it said in a statement. More than half of the funds raised are in the process of being committed towards three redevelopment projects in the Mumbai metropolitan area comprising two in Bandra and one in Andheri.
Anarock Group, a real estate services firm, played a key role in the fundraise and will continue to work jointly with Mt. K Kapital. The fund aims to invest in 8-10 projects in the Mumbai metropolitan area with a focus on redevelopment with Rustomjee Group as the development partner.
The Mt K Resi development fund is the firm’s ESG impact development fund that gives investors the opportunity to participate in equity returns of real estate projects.
In the Mumbai metropolitan area, Rustomjee Group has a development portfolio of 20 million square feet of finished projects, 9.2 million square feet of current development and 16.4 million square feet of planned development.
The fund will be led by Binitha Dalal and Abdeali Tambawala who have over 15 years of experience in finance and investments in the property market, the statement said.
The real estate market has seen a flurry of activity following the interruption created by the pandemic. Last week, HDFC Capital Advisors Ltd, a wholly-owned unit of HDFC Ltd, marked the initial close for Scheme 2 of its HDFC Capital Affordable Real Estate Fund–3 (H-CARE 3) at $376 million. This is the fourth fund raised by HDFC Capital for investments in affordable housing.
Canada Pension Plan Investment Board (CPPIB), among the most active alternative investors in India’s property sector, and Tata Realty and Infrastructure Ltd have announced an equal joint venture with an equity value of ₹5,300 crore to develop commercial office space. CPPIB has also partnered with Bengaluru-based realty firm RMZ Corp. committing to invest about ₹2,650 crore to develop and acquire commercial projects across India.
Also, global private equity firm Actis marked the final close of its Actis Asia Real Estate 2 fund at $700 million that will invest in real estate across Asia including India.