Investment manager Arnya RealEstates Fund Advisors Ltd and property developer Casagrand Premier Builder Ltd have partnered to form a ₹750 crore equity platform that will primarily fund residential projects in southern India.
The capital will be raised via Arnya Real Estate Fund III-Preferred Capital, a Category II alternative investment fund (AIF).
Arnya Real Estates will manage the fund, while Chennai-based Casagrand will develop the projects. The fund will invest in around 8-10 projects in Chennai, Bengaluru and Hyderabad, with investments ranging between ₹75 crore and ₹200 crore.
“The focus will be on the southern markets, and the projects will be in the mid-income to luxury range. It will be a six-year fund that will make project-level investments,” Sharad Mittal, founder and chief executive at Arnya RealEstates Fund Advisors, told Mint in an interview.
This is Arnya's third fund. Founded in 2023, it has been managing approximately ₹3,000 crore across multiple real estate strategies.
Arnya expects the newly launched fund's strategy to appeal to family offices, ultra-high-net-worth individuals (UHNWIs), and sophisticated investors seeking diversified exposure to India's residential real estate market.
The target corpus for the equity platform is ₹1,300 crore, and the fundraising is expected to close by October. The fund's focus is on society redevelopment projects in Mumbai, which has seen a huge spurt in activity in recent years.
Before this, Arnya Real Estates Fund Advisors had launched Arnya Real Estate Fund-Equity in partnership with developer Supreme Universal, which has already received ₹1,200 crore in commitments from family offices and UHNWIs.
In 2024, before the platform with Supreme Universal, Arnya launched its maiden real estate fund—Arnya Real Estate Fund-Debt.
Search for capital
“We see institutional capital playing an increasingly important role in the long-term growth of residential real estate. Our approach is to build enduring partnerships with institutional capital providers who share our focus on disciplined execution, transparency and aligned objectives,” Arun Mn, founder, chairman and managing director, Casagrand, said.
In June, Casagrand secured the Securities and Exchange Board of India's clearance to raise ₹1,220 crore through an initial public offering (IPO). The company filed its draft papers last December. The offering is a fresh issue of equity shares worth ₹1,200 crore and an offer for sale (OFS) up to ₹20 crore by promoters Arun Mn and Casagrand Luxor Pvt. Ltd. It may also consider a pre-IPO placement to raise up to ₹240 crore.
Equity investments in residential real estate are not very easy to come by, yet, the requirement for capital is huge because developers are expanding across cities. Real estate projects need capital, including debt and equity, at various stages of their life cycle. However, the source of capital for residential developers is quite limited.
Private equity (PE) investments in real estate fell 29% in 2025 to $3.46 billion from the preceding year due to lower inflows of funds in housing and warehousing projects, according to property advisory Knight Frank India.
“We are focused on building structured investment products that seek to create a balance between risk and return, while aligning the interests of both investors and development partners. We are growing as an AMC (asset management company) and look forward to adding more investment products in the next 6-12 months,” Arnya's Mittal added.