Reliance AIF to Raise Rs.400 Crores through Fund Raising
An estimated value of Rs.400 crore has been raised in the initial close of Reliance AIF Asset Management Co. Ltd.’s first real estate fund scheme. On the 1st of August, Reliance Yield Maximiser Alternative Investment Fund Scheme first came into being.
The Reliance AIF is a 100% subsidiary of the Reliance Capital Asset Management Limited and is estimated to raise a total of Rs.1000 crore under the first AIF initiative
Investments Made: The fund has been invested across four transactions that comprise of:
- One residential project in Mumbai and Bengaluru Each 2 projects in Chennai
Head of Project Management Services and alternative assets and Reliance Capital Asset Management claims to have received a strong response to the offerings and promises to raise only those funds capable of being deployed in high quality assets in a timely manner and this is in the best interest of the investors.
Types of Investments made: Reliance’s new fund shall be focusing on investments made in secured debentures and those on residential projects already in an advanced stage of construction or nearing completion. The residential projects are those of the top metros such as Pune and the NCR. The transaction for each of these investments have been estimated to be somewhere between Rs.40-120 crore and has an internal target rate of return at the rate of 20-24 per cent. Since most of these projects are urban developments, they are expected to have a greater number of buyers.
According to several reports based on the Indian real estate market, Indian realty-focused PE funds are aimed at raising an estimated value of 6 billion dollars in addition to the 1.6 billion dollars that has already been raised previously. This financial year has thus been concluded to be a robust one from the aspect of fund raising and capital deployment for various real estate funds; especially for those who had set out to raise money from domestic investors.
Previous fund raising: The Reliance Capital Asset Management has previously conducted other fund raising ventures having raised an approximate Rs.1400 crore and deployed them across the same 31 transactions. These have been done through the project management services platform. Associate Director of Real Estate Practice EY states that a lot of capital exists at the moment waiting to be deployed in the real estate sector and ample precautions are being taken by fund managers weighing their options with the right investments and projects.
Source: Live Mint
