IIFL real estate fund makes first investment
IIFL Alternate Asset Advisors, the venture capital arm of the India Infoline Group (IIFL), has made the first investment from its venture capital fund, backing a slum redevelopment project.
IIFL Real Estate Fund (Domestic Series I) has channeled INR800 million ($14.7 million) into the project, based in central Mumbai, which will generate about 1.2 million sq. ft of saleable space and be developed by Sheth Creators, according to Livemint. It will consist of two 50-storey residential towers and 2, 3 and 4 bedroom apartments located in the Sion Koliwada district, which will be sold at around INR 20,000-21,000 per sq. ft.
"The project location is in an established residential area with not much quality supply, yet there is robust demand," said Balaji Raghavan, CEO and CIO of IIFL Alternate Asset Advisors.
The venture arm raised INR5 billion ($100 million) for its real estate fund - its first foray into the private equity business - between November and January. It will focus on residential properties in India's top cities, through investments in equity, debt and equity-linked instruments in real estate and construction companies involved in projects or ventures with significant growth potential.
"Fund-raising was difficult, but we have set ourselves a realistic target," added Raghavan.
The brokerage plans to raise a further INR1 billion for the vehicle over the coming months.
IIFL is a retail and institutional brokerage that offers advisory and execution services to more than one million investors through a network of 3,000 business locations across India. In October last year, The Carlyle Group acquired a 9% stake in the listed unit of IIFL for $37.5 million on the open market.
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