Indiareit announces final close of Domestic Scheme V at Rs 1000 crore; returns Rs 100 crore+ oversubscription; Commits 25% of corpus across three transactions
Mumbai; 08th January 2014: Indiareit Fund Advisors Pvt Ltd, the real estate private equity arm of Piramal Enterprises, has announced the final closure of Domestic Scheme V. The fund, which had a targeted corpus of Rs 1,000 crore (including a greenshoe option of Rs 250 crore) had earlier crossed the basic fund size of Rs 750 crore in November. In a short span of a few weeks since, the fund has continued to witness a steady level of applications resulting in a final close taking place just prior to the end of the year.
Mr. Khushru Jijina, Managing Director – Indiareit, said “We are grateful for the overwhelming support shown by the investor community for our fifth domestic fund. In fact, despite reaching a final close and hitting our hard cap limit of Rs 1000 crore, we have had to turn away applications in recent days that saw the Fund being oversubscribed by more than Rs 100 crore. At the same time, we are witnessing very healthy levels of deal flow and are able to pick the best transactions given the real estate market dynamics, our preferred position and ability to commit relatively quickly. Even whilst announcing the final close of this fund raises, we have committed 25% of the corpus already and continue to build a pipeline of very attractive opportunities for the fund.”
The scheme is targeting structured returns and had already deployed 10% of the Fund to its first deal –a Rs 100 Crore investment in a joint venture between Ashiana Homes and the Landcraft Group. The project is located in Sector 88A, Gurgaon which has excellent access from the existing Pataudi Road, and will benefit from upcoming developments including the under construction Dwarka Expressway, and the fast growing New Gurgaon region. The regular shaped land parcel is spread across 14 acres with a total saleable area potential of around 1.5m sq ft. The investment is structured to provide an assured minimum return along with an equity kicker, and is backed by adequate security cover.
Since then, the Fund has approved two new transactions – the first is a Rs 60 crore investments into a residential project in Mumbai and the second, a Rs 90 crore investment in Bangalore.
Mumbai; 08th January 2014: Indiareit Fund Advisors Pvt Ltd, the real estate private equity arm of Piramal Enterprises, has announced the final closure of Domestic Scheme V. The fund, which had a targeted corpus of Rs 1,000 crore (including a greenshoe option of Rs 250 crore) had earlier crossed the basic fund size of Rs 750 crore in November. In a short span of a few weeks since, the fund has continued to witness a steady level of applications resulting in a final close taking place just prior to the end of the year.
Mr. Khushru Jijina, Managing Director – Indiareit, said “We are grateful for the overwhelming support shown by the investor community for our fifth domestic fund. In fact, despite reaching a final close and hitting our hard cap limit of Rs 1000 crore, we have had to turn away applications in recent days that saw the Fund being oversubscribed by more than Rs 100 crore. At the same time, we are witnessing very healthy levels of deal flow and are able to pick the best transactions given the real estate market dynamics, our preferred position and ability to commit relatively quickly. Even whilst announcing the final close of this fund raises, we have committed 25% of the corpus already and continue to build a pipeline of very attractive opportunities for the fund.”
The scheme is targeting structured returns and had already deployed 10% of the Fund to its first deal –a Rs 100 Crore investment in a joint venture between Ashiana Homes and the Landcraft Group. The project is located in Sector 88A, Gurgaon which has excellent access from the existing Pataudi Road, and will benefit from upcoming developments including the under construction Dwarka Expressway, and the fast growing New Gurgaon region. The regular shaped land parcel is spread across 14 acres with a total saleable area potential of around 1.5m sq ft. The investment is structured to provide an assured minimum return along with an equity kicker, and is backed by adequate security cover.
Since then, the Fund has approved two new transactions – the first is a Rs 60 crore investments into a residential project in Mumbai and the second, a Rs 90 crore investment in Bangalore.