Bengaluru: Investment manager Arnya Real Estates Fund Advisors and developer Supreme Universal have raised ₹1,030 crore for Arnya Real Estate Fund—Equity from domestic and offshore investors, including family offices and ultra-rich individuals, marking the first close for the equity platform.
The capital raised also includes around ₹220 crore of equity committed by the two sponsors. Arnya Real Estates will manage the fund, while Mumbai-based Supreme Universal will develop the projects.
Arnya Real Estates has raised the capital for the platform via a Sebi-registered category II alternative investment fund (AIF)—Arnya Real Estate Fund-Equity.
The two partners had announced the launch of a residential real estate platform in November that will develop housing projects in Mumbai and Pune. The total target corpus of the fund is ₹1,250 crore.
The fund will focus on developing society redevelopment projects in Mumbai, which has seen a huge spurt in activity in recent years. The platform is expected to have around seven to eight projects, with an investment of ₹80-200 crore each.
“Equity investments in residential real estate are hardly happening. Yet, the requirement for capital is huge because developers are expanding. 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,” Sharad Mittal, founder and chief executive officer, Arnya Real Estates Fund Advisors told Mint.
“Mumbai’s residential redevelopment segment represents one of the most scalable and structurally resilient business models in Indian real estate. Through this fund, we are providing investors with a structured and transparent vehicle to participate,” Mittal added.
The fund is evaluating the first two transactions, both Mumbai redevelopment projects.
Sunny Bijlani, joint managing director, Supreme Universal, said that as the real estate sector evolves, the quality and structure of capital have become as important as execution capability.
"Institutional partnerships such as this bring discipline and transparency into redevelopment projects," he added.
Arnya's equity fund follows the launch of its real estate debt fund. In 2024, it launched its maiden real estate fund—Arnya Real Estate Fund-Debt—aiming to raise ₹1,000 crore, Mint had reported.
So far, ₹425 crore has been committed across seven transactions in Mumbai, Pune, Bengaluru and Chennai.
“Our objective is to build a focused, institutional real estate asset management platform led by experienced real estate investment professionals, ensuring disciplined capital allocation,” Mittal added.
Private equity (PE) investments in real estate fell 29% in 2025 to $3.46 billion due to lower inflows of funds in housing and warehousing projects, according to property advisory Knight Frank India.
The residential segment, individually, attracted $576 million last year as against $1,177 million in the preceding year, which saw a peak in investments, as private equity investors turned cautious.
Arnya Real Estates 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.