Arnya Realestates, Casagrand Premier to raise Rs 750 cr equity fund

MUMBAI: Real estate investment manager Arnya Realestates Fund Advisors has entered into a alliance with realty developer Casagrand Premier Builder to jointly raise over Rs 750 crores through a category II Alternative Investment Fund (AIF), Arnya Real Estate Fund III - Preferred Capital.

The fund will focus on real estate opportunities across Chennai, Bengaluru and Hyderabad, with investments ranging between Rs 75 crore and Rs 200 crore across around 8-10 projects. The fund is structured to provide institutional investors exposure to real estate development margins through a preferred equity investment structure.

“We see institutional capital playing an increasingly important role in the long-term growth of residential real estate. Our approach is to build enduring partnerships with institutional capital providers who share our focus on disciplined execution, transparency and aligned objectives,” said Arun Mn, Founder & CMD, Casagrand Premier Builder.


According to him, the partnership is expected to provide a platform for supporting residential real estate development across southern India over the longer term.

“India's residential property sector has entered a structurally stronger phase, driven by regulatory reforms, increasing formalisation and sustained demand for organised developers. Institutional investors are looking for investment strategies that offer an improved balance between risk and return,” said Sharad Mittal, Founder & CEO, Arnya Realestates Fund Advisors.

He is of the view that the investment strategy is structured to balance risk and return while aligning the interests of investors and development partners.

The fund is structured as a SEBI-registered Category II AIF with an investor-first cash flow waterfall, where capital and returns are distributed to investors before residual distributions accrue to the developer.

Arnya expects the strategy to appeal to family offices, ultra-high-net-worth individuals, institutions and sophisticated investors seeking diversified exposure to India’s residential real estate market.

The fund comes amid continued momentum in India's residential real estate sector, particularly in southern India. Chennai, Bengaluru and Hyderabad have emerged as some of the country’s stronger housing markets, supported by infrastructure expansion, rising urbanisation and increasing consolidation towards branded developers. As developers pursue larger projects, demand for flexible institutional growth capital has also increased.

Founded in 2023, Arnya is now raising its third fund and has built a platform managing over Rs 3,000 crore across multiple real estate strategies, including debt, equity, preferred capital and core assets. Earlier this year, the firm achieved the first close of its residential equity fund at over Rs 1,030 crore.

The partnership follows a relationship spanning more than 15 years, during which Arnya founder and CEO Sharad Mittal has worked with Casagrand on more than 20 development projects.

Casagrand has a portfolio of over 88 million sq ft across 180 projects. As of June end, the developer had 103 completed projects with 21.79 million sq ft of saleable area, 57 ongoing projects spanning 44.10 million sq ft and 21 forthcoming projects with an estimated saleable area of 23.81 million sq ft.