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Business News/ Companies / News/  Indiareit closes its fifth domestic fund at Rs1,000 crore
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Indiareit closes its fifth domestic fund at Rs1,000 crore

The rupee-denominated fund was launched in early 2012, and had its first close in April the same year

The fund, ‘Domestic Scheme V’, which had targeted a corpus of Rs1,000 crore (including an option raise an additional Rs250 crore) had earlier crossed the basic fund size of Rs750 crore in November. Photo: Pradeep Gaur/MintPremium
The fund, ‘Domestic Scheme V’, which had targeted a corpus of Rs1,000 crore (including an option raise an additional Rs250 crore) had earlier crossed the basic fund size of Rs750 crore in November. Photo: Pradeep Gaur/Mint

Mumbai: Indiareit Fund Advisors Pvt. Ltd, the Mumbai-based real estate investment arm of Piramal Enterprises led by billionaire Ajai Piramal, has closed its fifth domestic fund. The fund, ‘Domestic Scheme V’, which had targeted a corpus of Rs1,000 crore (including an option raise an additional Rs250 crore) had earlier crossed the basic fund size of Rs750 crore in November.

“Despite reaching a final close and hitting our hard cap limit of Rs1,000 crore we have had to turn away applications in recent days that saw the Fund being oversubscribed by more than Rs100 crore," Khushru Jijina, managing director of Indiareit, said in a statement.

The rupee-denominated fund was launched in early 2012, and had its first close in April the same year.

The funds of the series typically invest in tier I cities, primarily in the residential sector. The first two funds in the series, with a total of Rs1,020 crore in combined capital, are expected to be fully divested by 2015.

As of now, Indiareit has already committed 25% of the fifth fund to three real estate projects in Mumbai, Bangalore and Gurgaon.

“We continue to build a pipeline of very attractive opportunities for the fund." said Jijina.

The scheme is targeting structured returns and had already deployed 10% of the fifth fund in its first transaction–a Rs100 crore investment in a joint venture between Ashiana Homes and the Landcraft Group, in Gurgaon.

The investment is structured to provide an assured minimum return along with an equity kicker, and is backed by adequate security cover, the statement said. Since then, the Fund has approved two new transactions—the first is a Rs60 crore investment in a residential project in Mumbai and the second, a Rs90 crore investment in Bangalore.

In August, Indiareit also closed its Mumbai Redevelopment Fund on its Rs500 crore target. The firm also continues to fundraise for its $300 million offshore fund.

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Published: 08 Jan 2014, 08:45 PM IST
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