Investment Fund Strategy and Objectives
The Mauritius-based India Real Estate Infrastructure Fund is set to conclude its first fundraising round by June, with an ambitious target of mobilizing $100 million. Launched in January, the fund's broader objective encompasses raising a total of $250 million through global private placements in Indian real estate companies.
Investment Approach
Key Investment Criteria
- Target unlisted Indian real estate companies
- Seek up to 50% stake for significant management influence
- Comply with Foreign Direct Investment (FDI) guidelines
Target Sectors
The fund will strategically invest across multiple real estate domains:
- Residential projects
- Commercial developments
- Hospitality sector
- Special Economic Zones (SEZ)
- IT Parks
- Hotel developments
Strategic Insights
Arun Goel, CEO of DHFL Venture Capital India Pvt. Ltd, highlighted the investment rationale: "An increasing population and flourishing services sector have catalyzed numerous greenfield projects for residential and office buildings. Rising accommodation costs in major Indian cities have generated substantial demand for reasonably priced establishments."
Investor Response and Geographical Spread
The fund has garnered significant international interest from:
- European Union countries
- Japan
- United Kingdom
- United Arab Emirates
Advisory and Management
- Financial Advisor: Mumbai-based Yen Management Consultants Pvt. Ltd
- Investment Selection Factors:
- Number of development projects
- FDI compliance
- Local market presence
- Growth strategies
- Project execution capabilities
Future Outlook
Sunil Shirole, Managing Director of Yen Management Consultants, noted: "We are receiving tremendous investor response, though some are currently observing the market. We anticipate active participation within 2-3 months."
Goel remains optimistic, projecting a 25% internal rate of return and not ruling out the possibility of launching a mutual fund within two years.