Arnya Realestates Fund Advisors, an alternative investment management firm founded by former Motilal Oswal executive Sharad Mittal, has hit the first close of its maiden debt fund at Rs 375 crore ($45 million).
The fund — Arnya Real Estate Fund-Debt — launched in April, aims for a total corpus of Rs 1,000 crore, with an additional green shoe option of Rs 1,000 crore. The firm plans to offer a range of real estate investment products, including debt, rental, and equity investments.
For its first close, Arnya raised funds from a group of investors, ranging from family offices, ultra-high-net-worth individuals (UHNWIs), and HNIs.
The fund will focus on providing early-stage growth capital to the residential real estate sector, targeting tier-1 developers in India’s top eight cities.
The residential sector in India is likely to see strong investment momentum due to an increase in disposable income and the desire for spacious homes, real estate firm Colliers said in a report earlier this year.
India’s growing economy, favourable policy reforms, and infrastructure development have made real estate a preferable destination for foreign investment, attracting over $5.8 billion in institutional investments across 53 deals in 2023, per data from real estate management firm JLL, cited by Reuters in April.
Earlier this year, India’s Prestige Estates Projects signed a deal worth $240 million with the Abu Dhabi Investment Authority and Kotak Alternate Investment Fund to develop residential projects in the country.
Last year, real estate developer Embassy Group had raised capital from Bain Capital, while Valor Estate, formerly known as DB Realty, snagged funds from investors, including Morgan Stanley and BNP Paribas, in March.
