PE Funds concentrate on investing in moderate size residential projects
IIFL Alternate Asset Advisors Ltd, a part of the diversified financial services firm IIFL Holdings Ltd, is all set to repeat its success story of its maiden real estate fund of 2012. The company is busy raising a new real estate fund that will focus on investments in residential projects, similar to the maiden real estate fund of 2012.
The proposed fund will have a Rs.500 crore corpus with an additional Rs.250 crore that can be added later. Initially this fund was planned to invest in land transactions across the cities, however the idea was scrapped over the worry of whether timely exits will be possible or not.
This Rs.750 crore fund will concentrate on deals in smaller cities for the first time, apart from the usual metros. He also mentioned that this fund will be launched in July and invited investors to invest and reap good returns.
There is a new trend in the market and the real estate analysts are closely speculating this trend. Private equity (PE) funds in the last few years have found residential investments of moderate sizes a safe option as returns are secure. While some funds look at early-stage project investments, some enter only at a more advanced stage when the project has procured all approvals and is under construction.
With the formation of the new government which is expected to be infrastructure and real estate friendly, this trend may yield better benefits to the investors in the time to come.
Source- Mint
IIFL Alternate Asset Advisors Ltd, IIFL Holdings Ltd, invest in land transactions, Private equity firms, real estate fund of 2012
