Ajay Piramal’s real estate fund will launch a property-specific fund that will give investors the opportunity to buy apartments in such projects at a discount. “We will jointly identify residential projects with builders and launch a property-specific fund for the project,” chief executive and managing director Ramesh T Jogani said on Tuesday. Investors in IndiaReit Fund Advisors Pvt Ltd’s plan “will be allotted units which will entitle them to apartments in the project from our share of investment in the project, at prices lower than that offered by the builders.” Investors will be allowed to invest up to the cost of the flat. They will have to pay the cost price of the property along with a 15-20 per cent management fee to buy it, said Jogani. “Our logic to this sale hinges on our guarantee to investors with a 20 per cent return to our investors. Our plan is to take this theme to a mass scale,” said Jogani, who closed a Rs 350 crore domestic fund recently and is in the market to raise Rs 450 crore from domestic institutional investors for real estate development. The fund is betting that the popularity of affordable homes won’t wane. IndiaReit also plans to raise about Rs 1,200 crore from high networth individuals for a fund that will focus on buying land around large cities earmarked for residential development and sell it within 12 years. Investors should be willing to stay invested for that length of time against the regular tenure of nine years. “We believe that land prices will rise as government creates infrastructure around large cities,” Jogani said. IndiaReit is promoted by Piramal Enterprises, which owns three funds with a corpus of $450 million that have jointly invested along with eight developers across nine cities to build residential properties. The company is looking to sell nearly 260 acres it owns in Hyderabad instead of developing it because the Telangana agitation has put off investors and buyers, Jogani said.
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IndiaReit Plans Project-Specific Fund
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