India: Sundaram Alternates launches third real estate fund

Photo: Reuters

Sundaram Alternates has launched the Sundaram Alternative Opportunities Series–High Yield Secured Real Estate Fund III. Sundaram Alternate Assets Ltd (SA) is a 100% subsidiary of Sundaram Asset Management Company Ltd (SAMC), which is in turn owned by Sundaram Finance Ltd, a leading non-banking financial company in India.

Sundaram Alternates currently manages two real estate funds. With a gross portfolio IRR (internal rate of return) of around 19%, SA’s High-Yield Secured Debt Fund I has repaid approximately 61% of capital in less than 3 years since final closing, a press release issued by the company said. The fund has been distributing interest income quarterly to investors and has continued to do so despite the challenging covid-19 environment, it added. The second real estate fund, High-Yield Secured Debt Fund-II, was recently closed and is currently in the phase of active portfolio construction. The fund has already distributed income amounting to 10.3% of drawn capital to its investors as interest coupons over the last more than one year, the release added.

Sundaram Alternative Opportunities Series–High Yield Secured Real Estate Fund III is a five-year close-ended Category II Alternative Investment Fund (AIF). The fund will invest in high yielding debentures and mezzanine securities of Indian entities backed by real assets that may include real estate, logistics, hotels and healthcare facilities. Investments will predominantly be backed by hard real estate collaterals, access to cash flows and other securities designed to protect capital and return attractive IRRs on a gross basis. The fund will invest predominantly in south India with opportunistic investments in Maharashtra and NCR, a press release issued by the company said.

The fund’s target size is 750 crore (plus a green shoe of 250 crore). Minimum investment in this fund is 1 crore. Karthik Athreya is the head of strategy (alternative credit) and the fund will be managed by Kumaran Chandrasekaran. The fund is open for subscription to domestic and international sophisticated investors. The sponsor of the fund is Sundaram Finance.

This article was first published on livemint.com

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.