Sundaram Alternates has launched Sundaram Alternative Opportunities Series – High Yield Secured Real Estate Fund III. The fund is a 5-year close-ended Category II AIF and is currently open for subscription.
The fund aims to invest in high yielding debentures and mezzanine securities of Indian entities backed by real assets that may include real estate, logistics, hotels and healthcare facilities.
In a press release, Sunil Subramaniam, MD, Sundaram AMC said, “The fund will allow investors to take advantage of the attractive opportunities in the real estate space. The Indian real estate sector has attracted inflows from foreign institutional and private equity players. There is a growing requirement of space from education, healthcare, e-commerce and logistics sectors. Residential real estate is also expected to grow significantly. By 2025, the real estate sector is projected to represent 13% of India’s GDP. The time is ripe for an entry into this space.”
Vijayendiran R, CEO, Sundaram Alternates said, “The fund will invest in secured high yield deals - self-liquidating real estate projects and those with secured asset cash flows, backed by commercial assets and other collaterals with back-ended redemption structures.”
The fund’s target size is Rs. 750 crore with a green shoe of Rs. 250 crore. Karthik Athreya is the Head of Strategy (Alternative Credit) and the fund will be managed by Kumaran Chandrasekaran.
The fund is open for subscription to sophisticated domestic and international investors.
