Indiareit Fund Advisors to raise Rs 500 cr via new fund

MUMBAI: Ajay Piramal Group-controlled property fund manager Indiareit Fund Advisors is aiming to raise more than Rs 500 crore through a new fund dedicated for investing only in redevelopment of slums and tenanted properties in Mumbai.

The fund to be raised in domestic market will be launched in the next four months and will have a greenshoe option of Rs 250 crore.

The fund, to be known as Mumbai Redevelopment Fund, will be targeting returns in excess of 30%. “There are no major land parcels available, it’s a scarce commodity and therefore makes any realty project costly.

In redevelopment projects, land cost is much lower and therefore returns are far superior,” said Ramesh Jogani, CEO and MD of Indiareit.