Private equity firm Indiareit Fund raises Rs 300 crore

Indiareit Fund Advisors, the real estate private equity arm of Piramal Enterprises, today said it has raised Rs 300 crore under its Domestic Scheme V.

"Indiareit announces interim closing of Domestic Scheme V. The fund, which has a targeted corpus of Rs 1,000 crore, has already reached a close of Rs 300 crore," the company said in a statement.

Scheme V is the sixth in the series of funds raised by the firm, which currently manages and advises a total corpus of Rs 4,343 crore across five earlier funds and two third party mandates, it said.

"The scheme is targeting structured returns to take advantage of the mismatch between the availability of capital and the demand for it," it said.

The investment underwriting, therefore, focuses on not just the quality of the project, visibility of cash flows and track record of the development partner, but also adds an extra layer of security to enhance the risk return profile, the release said.

"Despite a tough fund-raising environment, the speed of the interim close is testament to the quality of our sponsor, track record of the platform and our constant endeavour to always act in fiduciary capacity for our ever growing family of investors," Indiareit Managing Director Khushru Jijina said.

Indiareit has also achieved the target of raising Rs 500 crore under the Mumbai Redevelopment Fund. "The fund, which raised Rs 400 crore until a couple of months ago, has seen continued interest since and was fully subscribed in the previous month thereby reaching a final close. The fund targets a niche strategy focused on slum and redevelopment projects in Mumbai and has already committed around 40 percent of its corpus," the release added.