Mumbai, June 23: With an eye on the burgeoning real estate market, the Anand Rathi group has floated a real estate private equity fund with a target corpus of Rs 500 crore.
Called Real Estate Opportunities Fund, it aims to acquire rental income yielding properties and pick up equity stakes in real estate projects in high-growth cities which are witnessing rising incomes and strong urban growth, such as Pune, Bangalore, Hyderabad, Chennai and others.
The close-ended fund is targeted at high net worth domestic and overseas investors, individuals as well as financial institutions. It will invest in equity and equity-linked instruments of real estate and construction firms. The fund’s investment strategy will focus on acquiring secured rental income producing real estate assets with quality blue chip tenants and picking up equity stakes in specific real estate projects being developed by reputed developers.
“Due to the local nature of the real estate sector and complexity of transactions, its not easy for an investor to invest on their own in different cities and locations. A real estate fund provides investors a platform to diversify their real estate investments in various markets,” said Amit Rathi, managing director, Anand Rathi Securities.
Accentuating on the importance of research and in-depth understanding of the sector, CEO Sumit Anand said, “Our key investment decision variables will comprise the demand supply dynamics, the promoters’ background and the project fundamentals, besides a review of the exit options for the fund.”