India: Edelweiss closes its Real Estate Opportunities Fund at $78m

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Edelweiss Alternative Asset Advisors Ltd has marked the final close of its onshore alternate investment fund Edelweiss Real Estate Opportunities Fund raising the targeted corpus of Rs 500 crore ($78 million).

“The fund aims to capitalise on limited liquidity in real estate market through multi-strategy approach with focus on top six Tier-I cities in India namely Mumbai, NCR, Bangalore, Hyderabad, Pune  and Chennai across residential and commercial real estate,” the financial services group said in a statement.

The real estate fund had reached its close last month, and has already deployed Rs 152 crores in four deals.

A majority of the fund was raised from the client base of Edelweiss Private Wealth Management including family offices, business owners and promoters, ultra HNIs and corporate treasuries.

Edelweiss Alternative Asset Advisors deals in alternative private debt across special opportunities, real estate and distressed assets credit space. It managed seven funds catering to global and domestic investors across illiquid strategies in India including collateralized credit, real estate and distressed assets.

The announcement comes close on the heels of the Edelweiss group raising another alternative investment fund—Edelweiss Crossover Opportunities Fund—a pre-initial public offering (IPO) fund of up to Rs1,750 crore (approx $270 million).

Real estate market in India, has been attracting huge investments in the recent past, not only from domestic investors but also global firms that have been pumping in millions of dollars to get a piece of this lucrative space.

“Post demonetization the market in India has stabilized and RERA has given confidence to the buyers on timely completion of projects. The investments in alternative space in India have picked up significantly over the past year or so,”  Vibhor Gujarati, Head of Marketing – India, Edelweiss Alternative Asset Advisors.

Last month IIFL Investment Managers, the wealth and asset management business of IIFL Holdings Ltd, also announced that it is launching its latest real estate debt fund with a target corpus of almost $500 million. Prior to that, global insurance firm Allianz Group on announced that it has partnered with Shapoorji Pallonji Group to set up a $500 million real estate fund—SPREF II—which will invest in commercial office properties in India.

“We believe that residential real estate is poised to bounce back with existing regulation available to protect consumer interest. In addition, limited capital availability creates an ideal opportunity for providers of alternative sources of capital to invest in real estate. Improving business sentiments and a recovery in the demand for office space will lead to further investment opportunities,” said Nitin Jain, CEO, Global Wealth and Asset management, Edelweiss Group.

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