Axis AMC secures Rs 400 cr for new realty fund

Axis Asset Management Company has raised commitments of Rs 400 crore from domestic institutions and high networth individuals which will be loaned to realty companies across the major cities.

The announcement comes at a time when the realty sector is passing through a tough phase with worries on the residential side which is grappling with unsold inventories.

Axis AMC managing director for real estate Balaji Rao acknowledged the broader worries, saying developers have faced liquidity crunch and had to change business models due to implementation of the GST and Rera.

"Real estate business has changed and we are looking to work with developers who can adapt to it," he said, adding this is an "opportune moment" for value investors to identify and back realty players with strong systems and strategies.

The commitments for the Axis Rera Opportunities Fund-I have come from domestic institutions, high networth individuals and from Axis AMC, the company said in an official statement Tuesday.

The fund will be targeting investments through structured debt route in top eight cities and will look for developers with an established track record of delivery who show a potential for future growth, it said.

The company statement said real estate is an important asset class for investor and demand for mid-income and affordable housing is likely to continue to rise especially on Government initiatives.

Increasing per capita incomes and growing aspirations in the mid-market segment will fuel a potential boom, it claimed.