CHENNAI: IDFC Alternatives has launched its real estate fund, IDFC Real Estate Yield Fund, a domestic fund focused on the residential real estate segment in India. The fund has raised Rs 750 crore from domestic investors in ten weeks.
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.
It is targeting residential projects which are under construction across the top six cities (Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Pune).
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 building 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.
"This is our first real estate fund and we feel confident about its performance. The real estate sector is going through a tough phase against the backdrop of a market slowdown and most developers are stretched with reduced cash flows. This is the right time to plough money into the sector and structure transactions that will provide high yields going forward," M K Sinha, managing partner and chief executive officer, IDFC Alternatives, said.