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New ways for collecting funds from investors

Comments(3) Sub Category:Bangalore Posted On: Jun 15, 2012

Raising capitals for investing in new projects is the major concern to real estate builders. Following conventional methods of fund raising is no more a good idea.

Therefore fund managers have started looking for and implementing better ways of fund-raising techniques which would offer flexible terms to investors and a choice of projects to invest in.

Lavi Real Estate Advisors Ltd. plans to follow a “managed account” route, in which the investors are allowed to put their money into the fund when investment opportunities in projects come up.

Due to the slowing down of economy and lesser returns from the earlier investments made in real estate, many realty funds are finding difficulty in convincing the investors to invest in their new projects.

New fund collection techniques are helpful in convincing the investors and moreover, they work faster than the conventional ways.

Some fund managers are adopting blind pool method in which a group of investors pool in money but wouldn’t know details of the projects in which it will be invested. While some other fund managers are willing to put their own capital into a fund to boost investors’ confidence.

For larger funds, fund managers are selectively choosing co-investments to get a larger collection and more transactions to satisfy investors.

To read more real estate news:

Real estate investors are less interested in affordable & luxury housing project

Source: Livemint

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