Ajay Piramal-led Piramal Fund Management today said it has raised Rs 100 crore in a fund, which will be focusing on residential real estate investments.
The commitments for the 'Indiareit Apartment Fund', which will invest in residential units in tier-I cities, were raised in 10 days and the company is targeting to raise a total of Rs 350 crore for the fund, it said in a statement.
The fund will purchase apartments in bulk from the developers at a discount and the average investment tenure will be 2-3 years, it said.
The fund is targeted at individuals looking at real estate as an asset class for investment, it said, adding, the fund will underwrite units only which refers to the physical square feet, rather than the financial participation done usually.
Basics of such investments like defined use of funds, appropriate security and monitoring as well as ensuring developer alignment and project completion will be adhered to, it said.
The company claimed this is a win-win for all, as it ensures advance construction and delivery of initial sales, while the investor will get value deals and the security of diligence.
The fund has already committed Rs 50 crore towards an investment in Mumbai, the statement added.
Piramal Fund Management is into a diverse set of activities on the realty finance side, including structured equity, senior debt and construction finance.