Arnya, Supreme Universal join hands to launch ₹1,000-crore housing platform

Arnya RealEstates will raise the capital for the platform via a Sebi-registered Category II alternative investment fund (AIF)—Arnya Real Estate Fund-Equity.

“The focus of the platform is to develop non-slum, residential redevelopment projects in Mumbai and Pune. The platform will have around 7-8 projects, with an investment of ₹80-200 crore each," said Sharad Mittal, founder of Arnya RealEstates Fund, in an interview with Mint.

Arnya RealEstates will manage the fund, while Mumbai-based Supreme Universal will develop the projects. Both firms will commit 20% of their equity in the fund as sponsor capital.

Arnya RealEstates was set up by Mittal, a former executive director and chief executive of real estate funds at Motilal Oswal Alternates, to offer a range of real estate investment products, including debt, rental, and equity investments.

In 2024, it launched its maiden real estate fund—Arnya Real Estate Fund-Debt—aiming to raise ₹1,000 crore, with a green-shoe option of another ₹1,000 crore, Mint reported.

“Our objective at Arnya is to build a real estate-focused investment platform that provides investors with access to unique opportunities through private equity. Mumbai’s redevelopment segment represents the most scalable and resilient business model within Indian real estate," Mittal said.

Through this fund, we are creating a disciplined and structured way to participate in it, he added.

“There is a need to have the right kind of capital coming into real estate projects. With Arnya, we are building a model where capital, expertise, and execution converge to deliver both premium projects for buyers and superior outcomes for investors," said Vishal Jumani, joint managing director, Supreme Universal.

In a recent report, property advisory Knight Frank India said by 2030, ongoing housing society redevelopment projects in the Mumbai region would unlock 44,277 new homes, valued at ₹1.3 trillion.

“Society redevelopment in Mumbai is both inevitable and essential, given the city’s limited avenues of greenfield growth and the constant rise in demand. Redevelopment has significantly reshaped the dynamics of several micro-markets," said Shishir Baijal, chairman and managing director, Knight Frank India.

However, the report also signals that the society redevelopment space is quickly heating up due to rising prices and overheated market conditions. In recent years, a slew of top Mumbai developers, as well as those from outside the city, have chosen the redevelopment route to add new projects to their portfolios.