The fund is targeting to collect Rs 1,000 crore.
Indiabulls Asset Management is entering into the alternative investment space through its maiden offering Indiabulls Real Estate Fund, said a press release issued by the company.
This fund has been rated ‘AAA (AIF)’ by CARE Ratings and is targeting investments in residential projects in top 5 cities. The fund intends to invest in geographies with proven market depth, high inherent demand, pricing stability and projects with low execution risk. The proposed target fund size is Rs. 500 crore with an additional option of raising Rs. 500 crore and focusing an average deal tenure of 3 years, said the release.
The fund aims to capture growth opportunities across lifecycle of investee companies through primary, secondary and co-investment opportunities. The investments will be structured in the form of fully secured Non-Convertible Debentures with a well-defined exit strategy and periodic returns on a quarterly basis along with a back-ended upside. The sponsor of the fund, Indiabulls Housing Finance Ltd, an AAA-rated company, has expertise in mortgage financing business with strong lineage in managing developer project lifecycles.
In a press release, Akshay Gupta, CEO and Group Executive head, IBAMC said "Indiabulls AMC will emerge as one of the key players in the real estate fund space in the coming years. We plan to scale up our AIF investment presence and have plans to raise over Rs 10,000 crore under real-estate fund category in next 5 years from offshore and onshore markets.”
IBAMC has recently appointed Ambar Maheshwari as Chief Executive Officer (CEO) of its alternate investment funds business. Earlier Ambar was Managing Director of Corporate Finance at realty consultant Jones Lang LaSalle.
Ambar Maheshwari, CEO - Private Equity Fund: “The recent announcement of interest rate cut is expected to boost housing demand and will help in reviving the real estate market sentiments. The various initiatives taken by the government such as relaxation of Foreign direct investment (FDI) norms in the construction sector, Ordinance on the Land Acquisition Act and the legislation awaiting Parliamentary approval on the Real Estate (Development and Regulation), Bill has the potential to spur new project developments in the real estate space”.
AIFs are funds established or incorporated in India for pooling in capital from Indian and foreign investors for investing in accordance with a well-defined policy. SEBI had notified the AIF regulations in May 2012, and since then has granted registrations to over 100 such funds.
