Real estate-focused fund management company Mt K Kapital has secured Rs 350 crore (around $44 million) from anchor investors SBI, Famy Care, Rustomjee and other undisclosed high net-worth individuals.
The fund has raised capital in the Mt K Resi Development Fund (Category II SEBI registered Alternative Investment Fund), it said in a statement.
Over 50% of the funds raised are in the process of being committed toward three identified redevelopment projects in the Mumbai metro region. These include two in Bandra and one in Andheri.
Anarock Group, a real estate services firm, has played a key role in raising capital for the fund and will continue to work jointly with it, the statement added.
The fund aims to invest in 8–10 projects in the Mumbai Metro region with a focus on redevelopment and Rustomjee Group as the development partner.
Mt K Resi Development Fund is Mt K Kapital‘s ESG Impact Development Fund that provides the opportunity for investors to participate in the equity returns of real estate projects.
In the Mumbai metropolitan region, the Rustomjee Group has a development portfolio of 20 million square feet of finished projects, 9.2 million square feet of current development and 16.4 million square feet of planned development.
The fund will be led by Binitha Dalal and Abdeali Tambawala who brings in over 15 years of experience in finance and investments in the real estate sector, the statement added.
The real estate market has seen a flurry of activity following the interruption created by the COVID-19 pandemic.
Last week, HDFC Capital Advisors Ltd, a wholly-owned unit of HDFC Ltd, marked the initial close for Scheme 2 of its HDFC Capital Affordable Real Estate Fund–3 (H-CARE 3) at $376 million (around Rs 3,000 crore). This is the fourth fund raised by HDFC Capital for investments in affordable housing.
Canada Pension Plan Investment Board (CPPIB), among the most active alternative investors in India’s real estate sector, and Tata Realty and Infrastructure Ltd have announced a new 50:50 joint venture with an equity value of Rs 5,300 crore to develop commercial office space.
Global private equity investor Actis marked the final close of its Actis Asia Real Estate 2 (AARE2) fund at $700 million, which will invest in real estate that enables a new economy across Asia including India.
CPPIB partnered with Bengaluru-based realty firm RMZ Corp committing to invest around Rs 2,650 crore (around $355 million) to develop and acquire commercial projects across India.