Aditya Birla Sun Life AMC, BGO target $1 billion real estate portfolio

Mumbai: The real estate credit platform formed by Aditya Birla Sun Life AMC and global investment firm BGO, which operates through alternative investment funds and portfolio management services, is targeting a $1 billion portfolio in India in the next two-three years.

The plan to deploy more capital comes as developers increasingly turn to institutional investors for structured capital amid regulatory changes, sector consolidation and stronger balance sheets among leading players.

The platform has invested more than $200 million in India since 2022, spanning 19 projects across six cities. It focuses on residential, commercial and mixed-use developments with necessary approvals, partnering with established developers who have a proven track record. "The evolution of India's real estate market is creating a larger role for institutional credit, particularly as developers look for capital that is structured around the stage and risk profile of a project," A Balasubramanian, managing director and CEO, Aditya Birla Sun Life AMC told ET. "For us, the opportunity is not simply about deploying more capital, but about identifying projects where strong underlying fundamentals, experienced developers and robust structures can come together."

The platform remains focused on managing downside risks and preserving capital across market cycles, he said. Akshat Pandya, head of real estate at ABSL AMC, leads the platform.

"Our experience across projects and cities has reinforced the importance of understanding both the underlying asset and the execution environment. We see an opportunity to scale selectively as India's real estate credit market deepens," said Bharat Khanna, head of India at BGO.

The platform follows a disciplined underwriting approach, with due diligence covering technical, legal, financial and market parameters. Its investments carry security cover of 1.5-2 times, while the portfolio is monitored through the investment lifecycle.

The strategy combines ABSL AMC's local origination, underwriting, portfolio management and real estate expertise with BGO's global real estate investment experience and portfolio advisory capabilities.