The fund will focus on residential projects across Mumbai, Bengaluru, NCR, Pune, Chennai and Hyderabad, and is likely to be deployed within the next 18 months. Photo: Mint
The fund will focus on residential projects across Mumbai, Bengaluru, NCR, Pune, Chennai and Hyderabad, and is likely to be deployed within the next 18 months. Photo: Mint

Mirae Asset Global to launch $100 million AIF in India, invest in residential projects

According to Puneet Bhatia, head, real estate, Mirae Asset Global Investments (India), the AIF license was secured last month, and now it is seeking to primarily provide debt through non-convertible debentures

Mumbai: South Korea’s Mirae Asset Global Investments Co. Ltd is set to launch a $100 million alternate investment fund (AIF) in India primarily to invest in residential projects, said a top company executive.

The company had announced its plans to enter the Indian real estate market last year, and had subsequently got the approval from the Securities and Exchange Board of India (Sebi) to launch the Mirae Asset Credit Opportunities fund.

According to Puneet Bhatia, head, real estate, Mirae Asset Global Investments (India), the AIF license was secured last month, and now it is seeking to “primarily provide debt through non-convertible debentures". The parent firm will be pumping in the entire capital.

The fund will focus on residential projects across Mumbai, Bengaluru, NCR, Pune, Chennai and Hyderabad, and is likely to be deployed within the next 18 months.

“From a timing perspective, the opportunity is very large in the residential market with RERA, and post-demonetisation," Bhatia said. The company is in advanced talks with a real estate developer to sign a 70 crore deal.

Last September, Mint had reported that the Korean mutual fund house plans to enter India’s real estate sector with a $500 million investment for buying commercial leased properties.

However, Bhatia said that the company had changed its initials plans of investing only in commercial real estate, given the rising opportunities in the housing market. Of the $500 million, $100 million will be invested in residential projects. “We will also continue to look at office acquisition deals besides residential debt lending."

Bhatia, who was previously employed with with Edelweiss Financial group, was roped in to head the seven-member India unit.

Globally, the Mirae Group’s assets under management stands at $100.5 billion. Its product portfolio includes fixed income, mutual funds, private equity and real estate. In India, it is managing 10,000 crore of mutual fund assets. It owns and manages $11.6 billion worth of real estate properties across 12 countries.

Earlier, Jun Young Hong, head-businesses, Mirae Asset Global Investments (India) Pvt. Ltd, had said that the firm is looking to buy prime commercial assets, including IT parks, corporate offices, warehousing and “selected hospitality assets". He had said that the company would be creating a portfolio of income-generating large assets and “not smaller stand alone or strata ownerships".

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