IDFC Alternatives raises ` 750 cr for real estate fund

IDFC Alternatives Ltd., multi-asset class fund managers with a corpus of ` 14,414 crore, announced the close of its first real estate fund – IDFC Real Estate Yield Fund, a domestic fund focused on the residential real estate segment in India.
Despite the slowdown in the economy, the fund has raised ` 750 crore from domestic investors within a short span of 10 weeks. The fund is targeting residential projects which are under construction across the top 6 cities: Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Pune.
M.K. Sinha, Managing Partner and CEO, IDFC Alternatives says, “Real estate sector is going through a tough phase in the backdrop of a market slowdown and most developers are stretched with reduced cash flows. This is the right time to plough money into the sector and structure transactions that will provide high yields going forward.”
Ritesh Vohra, Partner – Real Estate Investments, IDFC Alternatives said, “The fund would be invested in ‘on-going’ residential projects to mitigate execution related risks.”
“The fund aims to build a high-quality portfolio by focusing on established developers and brown-field residential projects, which will help generate superior returns for the Fund’s investors by employing a balanced risk-return strategy,” the company said.

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