Puravankara maiden fund raises ₹200 crore in first close
The ₹750 crore, Category II AIF Purva Real Estate Fund was launched in April, and will invest in affordable housing projects as well as plotted developments
Purva Asset Management Pvt Ltd, a subsidiary of real estate firm Puravankara Ltd, has achieved the first close of ₹200 crore for its maiden alternative investment fund (AIF), said a top executive.
The ₹750 crore, Category II AIF Purva Real Estate Fund was launched in April, and will invest in affordable housing projects as well as plotted developments. The first fund scheme Purva Residential Excellence Fund-1’ plans to raise ₹500 crore along with a ₹250 crore greenshoe option, from mainly domestic investors including family offices and ultra-high networth individuals.
Bengaluru-based Puravankara develops budget homes under ‘Provident’ brand, plotted projects under ‘Purva Land’ and premium housing under the ‘Puravankara’ brand.
Puravakara is a sponsor to the fund and will co-invest in projects and acquire land parcels.
“The first close was achieved in a short period of 30-45 days. We will start deploying the capital now. We expect to raise ₹500 crore by September. If the green-shoe option is exercised, the targeted raise would happen in another 60-90 days,” managing director Ashish Puravankara said in an interview.
The fund, which will invest in Bengaluru, Pune, Chennai, Hyderabad and Mumbai Metropolitan Region (MMR), has identified two plotted development projects in Chennai and Bengaluru. It has also identified three more projects where it will invest over the next 4-6 months.
The funds will be used to acquire land for the projects. The fund will have a revenue sharing arrangement with Provident/Puravankara, which provides investors insulation again project cost fluctuations. The revenue sharing kicks in as soon as a project is launched.
Purva Asset Management will build various pools of capital going forward. Once this fund is raised, there would also be a second fund.
“There is a revival in overall investor interest. But is it largely reserved for larger and more organized developers now, who have a good track record,” said Shailesh Vishwanathan, fund manager and director, Purva Asset Management.
IIFL Wealth Management is the distributor for the fund.
In 2020, IFC and IFC Emerging Asia Fund partnered with Puravankara to invest $76 million in the latter’s affordable housing projects in India.
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First Published:21 Jul 2022, 06:52 PM IST
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