Axis Asset Management Company’s (AMC) maiden real estate fund -Axis RERA Opportunities Fund – I - has signed its first deal to invest ₹60 crore in a township project of Chennai-based developer Akshaya Pvt. Ltd.
The structured debt investment has been made in Akshaya’s upcoming township project ‘Orlando’ in Kelambakkam, on Old Mahabalipuram Road and will fund construction. The project is expected to launch in the next 45 days.
In April, Axis AMC, a unit of Axis Bank, said it has concluded raising its first real estate alternate investment fund with commitments of over ₹400 crore.
Investors included domestic institutions, high networth individuals and the sponsor, Axis AMC. The fund is targeting investments through the structured debt route in top eight cities, and aims to work with developers with an established track record of delivery, who show potential and capability for future growth.
“…I believe that in the future, real estate will be tilting towards themed and serviced projects and Orlando, the project we are investing in, is an example of the same. The project is an ideal one in the mid-market segment in that locality," said Balaji Rao, managing partner – real estate, Axis AMC.
Real estate business in India has changed, and we are looking to work with developers who can adapt to it, Rao added.
T. Chitty Babu, chairman and CEO, Akshaya Pvt. Ltd said ‘Orlando’ is one of its most exciting upcoming projects.
“…We appreciate the due diligence exhibited by Axis AMC in selecting Akshaya for their maiden real estate fund," Babu said.