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Azure Capital launches $94m property fund

  • Alvina Yuen
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India's Azure Capital is raising an INR5 billion ($94.10 million) real estate private equity fund that will target commercial properties across the top seven cities in the country. The new vehicle - India Realty Fund II (IRF2) – will be raised completely from domestic investors.

The rental yield fund will primarily focus on investment-grade commercial properties that are pre-leased and built-to-suit in Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune and Ahmedabad. The average ticket size will be INR250-300 million.

"These projects will provide regular returns to investors with an upside of capital appreciation," said Shailesh Ghorpade, CEO of Azure Capital."Recurring yield income coupled with high and stable capital appreciation, diversified portfolio with superior risk-adjusted returns, absence of development risks together makes IRF2 a safe investment proposition in the Indian real estate fund category today."

Motilal Oswal Private Equity is also planning to set up a INR6 billion real estate fund to invest in residential projects in large cities such as Mumbai, Chennai, Bangalore, Pune and National Capital Region (NCR). The fund will tap both institutional investors and high net worth individuals (HNWIs).

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