Piramal Fund Management has surpassed its initial fund size of Rs 350 croreore for the ‘Indiareit Apartment Fund’ by raising Rs 500 crore of aggregate commitments in just under three months since launch. The platform has exercised its green shoe option to in crore ease the size of the offering towards a hard cap of Rs 700 crore.
The Fund is uniquely positioned as a first-to-market platform for underwriting units only i.e. physical square feet rather than financial participation, whilst adhering to the basic tenets of a defined use of funds, appropriate security and monitoring as well as ensuring developer alignment and project completion – key risks that a retail buyer in the open market would want to address. For the investor, the Fund therefore enables them to access value deals in the market and participate in a ‘secured’ position with the benefit of a highly attractive price point, diligence and structuring vis a vis an individual transaction.
The Fund has already disbursed its first transaction, a Rs 50 crore investment into Omkar Alta Monte in Mumbai (Malad) wherein the Fund has underwritten specific units at a substantial discount to prevailing market prices. The Fund has also approved two further transactions, in Mumbai (Bandra Kurla Complex) and Chennai (Adyar) respectively, which are in final stages of pre disbursement diligence.
Khushru Jijina, Managing Director, Piramal Fund Management said, “We are once again humbled to see such an overwhelming response to the fund raising exercise carried out by our platform. With the Apartment Fund, we have consciously added another product to our suite of offerings to further our engagement with our development partneRs. This strategy uniquely enables them to advance construction and delivery of units without the pressure of sales and incroreeases visibility of site progress.
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