IDFC Alternatives raises Rs 750 crore for its first real estate fund
Mar 20, 2014
Source : The Times of India

 

COIMBATORE: IDFC Alternatives, one of the largest multi-asset class fund managers, with a corpus of Rs 14,414 crore, has announced the close of its first real estate fund -- IDFC Real Estate Yield Fund, a domestic fund focused on the residential real estate segment in the country.

Despite the slowdown in the economy, the fund has raised Rs 750 crore from domestic investors in ten weeks. The fund is targeting residential projects which are under construction across the top six cities (Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Pune). It is a focused debt fund with a medium term horizon and has already committed Rs 123 crore across two residential projects in Pune and Bangalore.

"This is our first real estate fund and we feel confident about its performance. The real estate sector is going through a tough phase in the backdrop of a market slowdown and most developers are stretched with reduced cash flows," said M K Sinha, managing partner & CEO, IDFC Alternatives.

"This is the right time to plough money into the sector and structure transactions that will provide high yields going forward," he said. "This fund has some key differentiators—it is a focused debt fund that targets a regular distribution of income to investors," said Ritesh Vohra, Partner - Real Estate Investments, IDFC Alternatives.

The fund would be invested in 'ongoing' residential projects to mitigate execution related risks. "It has a lower risk profile given the secured nature of underlying investments and has been designed to be an investor-friendly product," IDFC said.

The IDFC Real Estate Yield Fund will capitalize on the opportunities by focusing on debt deals that generate high yields, while ensuring downside protection and adequate security cover.

The fund aims at build a high-quality portfolio by focusing on established developers and brown-field residential projects, which will help generate superior returns for the fund's investors by employing a balanced risk-return strategy.

 

 

 

 

 

 

 

 

Latest Realty News

Taurus Investment Holdings draws up Rs 1,200-crore scheme near Technopark
Mar 14, 2014
THIRUVANANTHAPURAM: German-Amercian commercial real estate developer Taurus Investment Holdings has drawn up a Rs 1,200-crore scheme for developing a downtown mode social infrastructure close to Kerala's IT hub Technopark here.
GCDA's budget: Mixed bag with few surprises
Feb 15, 2014
KOCHI: Trust Greater Cochin Development Authority (GCDA) to spring a surprise! After mooting 'novel' revenue-generating initiatives such as the Rs 85-crore marine tunnel aquarium last year, the agency is now eyeing the education sector.
Realtors Sabotage CRZ Laws via Unholy Links
Feb 08, 2014
KOCHI: A majority of the real estate and tourism players in the state chalk out a slow-and-steady-winning gameplan for sabotaging Coastal Regulation Zone laws, thanks to the unholy nexus among powerful businessmen, heads of social and religious organisations and politicians.
No water for tax defaulters: Municipal corporation
Feb 08, 2014
COIMBATORE: The city municipal corporation is resorting to stringent measures to ensure that property tax defaulters of the second half of 2013-14 financial year pay up the arrears without further delay.
Protests Mounting against Land Acquisition Move
Feb 06, 2014
KERALA: When a few applicants, including local residents and building designers, from Chanthavila and Kattayikonam divisions visited the Kazhakkoottam zonal office and City Corporation office for a building permit last year, they were in for a shock as their applications were rejected.
Credit metrics of real estate firms continue to deteriorate on weak demand
Jan 22, 2014
COIMBATORE: Credit metrics of real estate companies will continue to deteriorate in 2014-15 as high residential prices continue to impact sales, India Ratings and Research has said. The rising bank credit to the sector indicates an increase in inventory, it said.
‘Construction bandh’in Kerala from today
Jan 21, 2014
KOCHI: The construction sector in Kerala will shut down for three days from Monday in response to a ‘construction bandh’ called by the Confederation of Construction Organisations, which consists of nearly two dozen associations such as those of architects, house painters, builders and quarry operators.
New Policy to Help Ports Get Optimum from Real Estate
Jan 21, 2014
KOCHI: The Union government has released new policy guidelines for major ports to help them leverage optimum commercial advantage from land resources.
Alind Property: State Govt Files Statutory Objection
Jan 21, 2014
THIRUVANANTHAPURAM: Finally, the State Government also seems to have woken up to block the designs of Somani Group, the current promoters of the Kundara-based Aluminium Industries Ltd(ALIND), to plunder the company’s assets and landed property worth thousands of crores of rupees.
Global realty brokerage chain RE/MAX enters Coimbatore
Dec 28, 2013
COIMBATORE: RE/MAX India, a division of RE/MAX International Property Group of the US, has entered Coimbatore with appointment of a Regional Franchisee Owner for the Rest of Tamil Nadu.

Latest Realty News Of State

Realty Talk's