Integrow to raise ₹1,000 cr for realty fund

Integrow Asset Management Pvt. Ltd is raising ₹1,000 crore for its first real estate fund from domestic investors and will focus on last-mile project funding, said a top executive.

Integrow Special Opportunities Fund has been set up as an alternative investment fund (AIF Category II) and got approval from the Securities and Exchange Board of India last week. The fund plans to raise ₹500 crore along with a greenshoe option of raising an additional ₹500 crore over the next 6-8 months.

It will raise the capital mainly from high-net-worth individuals and single-family offices.

Serial entrepreneur Ashish Deora, the founder and CEO of real estate firm Aurum Ventures, is an anchor investor in the fund. In March, Aurum Ventures acquired 14.78% in IT consulting and software firm Majesco through a subsidiary.

The Mumbai-based asset management firm was set up last year by Yadav, a former CEO, real estate practice, Edelweiss Financial Services Ltd.

“After founding the company, we have built a strong team of professionals from various sectors. The first fund will focus on investing execution capital and last-mile funding because the demand for working capital is high. We will also do inventory funding,” Ram Yadav, founder and CEO of Integrow said in an interview.

The fund will offer equity-like structured capital and invest 70-80% in residential projects, where working capital needs are high.

The ongoing distress in India’s residential sector has thrown up opportunities for the launch of new ventures.

The stress in the residential segment is deep-rooted, with stalled and delayed projects, cash flow issues, and a liquidity crunch.

Integrow will look at stressed projects, Yadav said. It will also aim to have a diversified portfolio with different kinds of funds, which may include co-working and shared living project investments, he said.

It is going to be a large real estate platform with various kinds of investments, Yadav said.

The second wave has disrupted the recovery curve that the residential sector had witnessed until March 2021. Mid-sized and small developers are facing liquidity concerns as banks remain wary of lending, non-banking financial companies are struggling with their own problems and private equity funds are offering capital selectively.