IDFC Alternatives unveils two real estate funds
The firm expects to announce the first close in the next 45 days and the final close in the next 3-4 months.
Jan 28, 2014
Source : The Hindu

MUMBAI: Sensing a healthy appetite from the real estate industry, IDFC Alternatives, the private equity arm of infrastructure finance company IDFC Ltd, is raising two funds for the sector. The firm is raising a domestic mezzanine debt fund of about $100 million (?620 crore) and a foreign rental yield fund of $300 million (?1,860 crore).

“There is enough demand in the market as all the real estate developers are looking for money. We are looking to raise a modest number and if we get to a $100 million number, we would be happy,” M.K. Sinha, Managing Partner and Chief Executive Officer of IDFC Alternatives said, talking about the domestic fund. The firm expects to announce the first close in the next 45 days and the final close in the next three to four months. It intends to raise the proceeds from domestic investors, such as family offices and high networth individuals and invest in real estate projects across the seven Indian major cities, including the metros.

It has also received some commitments, Sinha said, but did not divulge further details.

IDFC Alternatives is also raising a foreign rental yield fund of “maybe $300 million” and expects to tie up funds by July. This would be a foreign joint venture club-structure rental yield fund, for which the PE firm is in talks with “strategic players.”

The exit modes would be through Real Estate Investment Trusts or strategic sale of buildings, Sinha added.

The firm, hich was started in 2002 with a $200-million fund, now has close to $3 billion of assets under management across infrastructure, private equity and real estate.

“We are now transitioning to what we call a multi-asset class, alternatives platform. We will conceive and float funds in other asset classes. I can’t reveal them now,” Sinha added.

$1-b fundIDFC Alternatives, which had received commitments of $644 million for its second infrastructure fund, expects to announce the final close in the next three to four months.

The PE firm is targeting a corpus of $1 billion, and when closed, this would be the biggest infrastructure fund. It would invest in roads, ports, airports and power, among others.

The company, which had wound up its PE Fund I in December 2013, has two other PE funds (Fund II of ?1,858 crore and Fund III of ?2,903 crore).

“Over the next six months to a year, we will focus on harvesting (exits) and value creation in our portfolio before we think of launching our private equity fund IV,” Sinha added.

Latest Realty News

Banking, realty stocks gain ahead of RBI policy
Jan 28, 2014
MUMBAI: Key benchmark indices trimmed gains after hitting intraday high in morning trade. The barometer index, the S&P BSE Sensex, was up 39.94 points or 0.19%, off 29.12 points from the day's high and up 33.17 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Sebi unhappy with fund houses' efforts to increase reach
Jan 28, 2014
MUMBAI: Securities and Exchange Board of India (Sebi) has raised concern over lack of efforts shown by mutual fund houses to penetrate beyond the top cities, despite the extra incentives provided by the regulator.
Long-term policy for mutual funds very soon: Sebi
Jan 28, 2014
MUMBAI: Sebi Chairman U K Sinha today said the market watchdog will shortly come out with a long-term policy for the mutual fund industry which will help deepen the penetration of the industry into non-metro markets.
SEBI to consider new policy for mutual fund sector soon
Jan 28, 2014
MUMBAI: Market regulator SEBI plans to consider a new long-term policy for the mutual fund sector at its next board meeting to be held soon.
‘Luxury’ is a much abused word
Jan 28, 2014
MUMBAI: Property ads urge us to “indulge in opulence” and promise to “pamper you in comfort”. While the glossy brochures and virtual tours may impress you, you often find that the features offered don’t justify the exorbitant price tag of a luxury home.
464 acre sewage land to fall prey to concrete jungle
Jan 28, 2014
NAGPUR: The greens' fears have come true. The Nagpur Improvement Trust (NIT) has again put up a proposal to convert 464.31 acres acquired for sewage disposal projects into a concrete jungle. The proposal is based on applications from a couple of builders, seeking to change the user to 'residential'. Besides, the proposal is being considered even though Nagpur Municipal Corporation (NMC) badly requires land for sewage collection and treatment.
South Mumbai property owner traced to Malad ashram
Jan 28, 2014
MUMBAI: Nikhil Jhaveri, the owner of the defunct Palm Beach School, Nepean Sea Road, who was missing for more than a month, was traced to a shelter for destitute people in Malad on Sunday. Ironically, the Borivli police enrolled him, but did not communicate the information to the Samta Nagar police, who were looking for him.
Money mistakes that might haunt you in the future
Jan 28, 2014
MUMBAI: Making mistakes with our money is something we all are wary of but can never really be sure of avoiding. Even those of our friends who seem to have the smarts for handling their money, sometimes falter at problems that credit and financial planning bring along.
BSE Small-Cap, Mid-Cap indices off over 2% each
Jan 28, 2014
MUMBAI: Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. The barometer index, the S&P BSE Sensex, was down 355.83 points or 1.68%, off 121.30 points from the day's high and up 3.98 points from the day's low. The market breadth indicating the overall health of the market was quite weak with more than three losers for every gainer on BSE. The BSE Mid-Cap and Small-Cap indices were off more than 2% each. Weakness in Asian stocks and a steep slide in US stoc
Nahar Group launches multi-themed villas in Mumbai
Jan 28, 2014
Mumbai: The Nahar Group, India’s leading real estate developer today made its foray in premium villas by launching Bali themed podium villas at Nahar’s Amrit Shakti in Chandivali, Powai. The limited edition of the villas is well planned to provide complete privacy and exclusivity to the owner. Each villa is spacious and super luxurious with a private garden, a perfect home for those who opt for something special and unique.

Latest Realty News Of State

Realty Talk's