TriVeda Capital, a real estate-focused alternative investment fund (AIF), is raising Rs 200 crore with a green-shoe option of Rs 50 crore to invest in plotted development projects.
Indian real estate is rapidly emerging as the asset class of choice for investors, driven by sales growth, increased rental yields, infrastructure projects and upward revisions in India’s GDP growth forecast, Pai told reporters.
The firm currently has two plotted transaction deals in the pipeline in Bengaluru, consisting of 25 acres and 4 acres, respectively.
The category-II alternative investment fund, named Bangalore Opportunity, focuses on investing in plotted development and residential properties in major cities in southern India. The goal of the fund is to amass $1 billion in assets under management within the next five years.
TriVeda Capital has been established by Pai who is also managing director of Century Real Estate Holding and Raj S Inamdar, founder of Sorani Capital LLC. The partners have executed over $2 billion in transactions and managed an active development portfolio exceeding 15 million square feet, through their careers.
The AIF activity in real estate has seen a spike. Recently Motilal Oswal Alternates, the alternative investment arm of the Motilal Oswal Group said that it is set to invest a total of ₹2,500 crore in the real estate sector this financial year even as it prepares to raise its sixth fund.
Last week, real estate-focused fund management firm Mt. K Kapital has secured ₹350 crore (about $43 million) from anchor investors State Bank of India, Famy Care, Rustomjee Group and other undisclosed high-net-worth individuals.
similarly, HDFC Capital Advisors Ltd, a wholly-owned unit of HDFC Ltd, marked the initial close for Scheme 2 of its HDFC Capital Affordable Real Estate Fund–3 (H-CARE 3) at $376 million. This is the fourth fund raised by HDFC Capital for investments in affordable housing.
Canada Pension Plan Investment Board (CPPIB), one among the most active alternative investors in India’s property sector and Tata Realty and Infrastructure Ltd have announced an equal joint venture with an equity value of ₹5,300 crore to develop commercial office space. CPPIB has also partnered with Bengaluru-based realty firm RMZ Corp. committing to invest about ₹2,650 crore to develop and acquire commercial projects across India.
Private equity investments in the Indian real estate industry stood at $3.4 billion, or around ₹271 billion, at the end of 2022, staying at levels seen in 2021, according to international property consultant Savills. Data suggests that commercial office assets remained the front runner during 2022, garnering nearly 45% of the investment pie. Residential and retail sectors also witnessed robust growth, riding high on the end user’s demand.