Indiabulls Real Estate Fund raises Rs 300 crore from investors

BENGALURU: Indiabulls Real Estate Fund (IREF) has raised Rs 300 crore from investors for its maiden real estate fund, the company said on Monday. IREF is targeting to raise a total of Rs 1,000 crore under the first scheme of Indiabulls' Alternative Investment Fund (AIF), the Indiabulls real estate fund that was launched in February. The commitment of around Rs 300 crore includes funds raised from high net worth individuals, institutional investors and family offices.

“The fund is expected to draw down another Rs 200 crore shortly," said Ambar Mahesherwari, CEO, private equity funds, at Indiabulls Asset Management Company. “The target corpus of Rs 500 crore (with a greenshoe option of another Rs 500 crore) is expected to be fully raised over the next three to four months."

Maheshwari said Indiabulls is in advanced discussions with real estate developers in Mumbai, NCR and Bengaluru on additional deals and plan to do few more investments shortly.

He said Indiabulls Real Estate Fund has also made its first investment of Rs 100 crore in an under-construction residential project in NCR being developed by Vatika Group.The fund has subscribed to fully secured, listed non-convertible debentures issued by one of the subsidiaries of Vatika.

“The money will be used for a group housing project in Gurgaon that is expected to be delivered in a year," said Anil Bhalla, chairman of the company.