After closing its two earlier real estate funds, India Infoline Ltd (IIFL) plans to raise two new funds. These new funds will be invested for developing a residential and office space projects.
India Infoline Ltd (IIFL) has announced that it would close two old real estate funds soon and start raising two new funds. IIFL plans to raise the new funds from domestic investors. The funds will be probably be used for developing residential or commercial projects.
Private equity funds are always a key for the developers, as banks have reduced their loans to the developers. The developers accept this kind of PE funds for buying out land parcels for project-developments. They also use it for meeting the construction costs.
Earlier IIFL, through its PE arm has invested Rs.110 Cr with Shipra Group for developing a residential project in Ghaziabad.
Under the IIFL Domestic Real Estate Series 1, the group’s first PERE fund, the group has invested another Rs.30 Cr. This investment was done for redeveloping a project of Ruparel Realty in Mumbai.
Now the group is planning to raise another two funds through its PE arm, after closing the first funds. Under the first two funds, the group has collected Rs.700 Cr.
We have collected Rs.700 Cr under the first two funds and now we are looking to raise two other funds, the group CEO Balaji Raghavan informed the media persons.
Mr. Raghavan added that the new fund will be focused on developing affordable housing projects in the prominent realty markets.
Through its maiden alternative investment fund (AIF) – IIFL Income Opportunities Fund, the group has recently raised Rs.628 Cr in April. This fund was raised by IIFL Wealth Management Ltd. However this is not to be invested in the real estate sector.
Developers are now looking at PE investments as key to them. Now the banks have become highly selective to offer loans to the builders. This, in turn, gives better hopes to the PE firms.