Pune, Chennai and Bengaluru are the cities where the company is evaluating mid-range commercial real estate assets
Indiabulls Asset Management Company (AMC) is looking to acquire three commercial properties in as many Tier-1 cities in India and at least one of these deals is likely to close soon, said a source close to the development.
Pune, Chennai and Bengaluru are the cities where the company is evaluating mid-range commercial real estate assets.
Once the acquisition is finalised, this would be the third such deal by the company under its Indiabulls Dual Advantage Commercial Asset Fund that focuses only on commercial assets in Tier-1 cities to get a regular rental income and capital appreciation as returns on investment.
This is their fourth fund in the realty space, but first such fund in the commercial segment. "The company continues to acquire commercial real estate assets of a smaller scale in the range of Rs 200 crore to Rs 500 crore," said an executive.
Through this fund, Indiabulls AMC is looking to create a portfolio of Rs 2,000 crore of commercial spaces. It has already committed about Rs 640 crore in two assets – one each in Gurugram, Haryana and Hyderabad, Telangana.
For this fund, the company had launched plans to raise Rs 1,000 crore during the last fiscal.
Recently, the AMC has also come up with Fund V, which targets affordable housing. As per details available with DNA Money, this will be a Rs 500 crore fund focusing on National Capital Region, Mumbai Metropolitan Region, Chennai, Bengaluru, Hyderabad and Pune. Tie-ups with the established players in the regional markets are likely to commence during the next quarter.
The company, which has so far raised funds only within India, is now looking to start tapping overseas markets by the end of this fiscal, particularly the institutional investors.
"We are a domestic player so far. We raise money domestically. We want go overseas eventually, to create a scale. I don't think we will raise money this fiscal, but the initiative and efforts will start this fiscal," said the executive, adding that the company will target commercial assets with the funds raised from international markets.
"Given that the market is there today, we will go with the commercial asset strategy. That doesn't mean we would not do residential. But in all likelihood, it would be a commercial business play, where the idea is to raise money from the offshore institutional investors. It could be anywhere between $300-500 million (about Rs 2,000 to Rs 3,500 crore) to invest into commercial real estate in India," the executive said.
Indiabulls AMC, which is the investment arm of Indiabulls Group, had launched first real estate fund was in 2015. It manages mutual funds, alternative investment funds and portfolio management services, and is among the largest domestic real estate AIF fund managers.
...& ANALYSIS
- The AMC is evaluating mid-range commercial real estate assets in Pune, Chennai and Bengaluru
- The acquisitions are likely to be in the range of Rs 200 crore to Rs 500 crore
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