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Indiareit raises $160m domestic property fund

  • Mirzaan Jamwal
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Piramal Enterprises’ Indiareit Fund Advisors has reached a final close of INR10 billion ($160.5 million) on its fifth domestic fund.

The rupee-denominated Domestic Fund V was launched in early 2012 with a INR7.5 billion basic fund size and INR2.5 billion greenshoe option, and had its first close in April the same year. It had raised INR8 billion by November 2013, with commitments from several high net worth individuals.

Khushru Jijina, managing director of Indiareit, said in a statement that the team had to turn away applications in recent days as the fund became oversubscribed by more than INR1 billion.

The vehicle is focused on investing in residential property in tier one cities. It invests through structured transactions with downside protection mechanisms. The fund's exits will be based on self-liquidation or through repayment of fixed IRRs by the developer to the fund.

Indiareit has committed 25% of the corpus to three real estate projects in Mumbai, Bangalore and Gurgaon.

The Gurgaon development is a Ashiana Homes-Landcraft Projects housing joint venture, which will receive INR1 billion. A further INR600 million has been committed to a residential development in Mumbai while INR900million will go to the Bangalore project.

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