Integrow Asset Management plans to start raising its second residential real estate fund next year, as it expands its offerings after rolling out portfolio management services and an investment vehicle for office properties.
The Mumbai-based real estate asset manager aims to start the fundraising process for the new housing-focused alternative investment fund by April next year, Ramashrya Yadav, Integrow’s founder and CEO, told VCCircle.
It will look to secure Rs 2,000 crore ($240 million) for the second AIF, about four times higher than the corpus of its first vehicle, he said. The firm intends to seek approval of the Securities and Exchange Board of India for the second AIF soon.
Integrow was set up in 2020. In 2021, Aurum PropTech Ltd (formerly known as Majesco Ltd) acquired a 49% stake in the company for Rs 25 crore. Integrow started real estate portfolio management services earlier this month. In May, it floated a Rs 1,500- crore fund to invest in commercial properties.
According to Yadav, the asset manager is looking to mark the first close of the
commercial real estate fund at about 40% of the total corpus by December. The firm aims to build its portfolio to cross Rs 4,000 crore via this fund. The planned housing fund will further expand the company’s portfolio.
Yadav also said that Integrow deployed capital from the first residential AIF across projects in Mumbai and Pune primarily. It plans to widen the geographical scope of the second AIF to 12 areas, comprising six major real estate markets and six secondary markets, he said.
Ticket sizes will also increase to Rs 300- 400 crore. Currently, they are up to Rs 100 crore.
The strategy is also likely to include pre-approval real estate projects along with post-approval ones; the current fund is only focused on post-approval projects. The mix between these two strategies is expected to be equal, Yadav added.
In one of its latest transactions, Integrow invested about Rs 225 crore in the real estate projects being built by Pranami Group in August. While Integrow is making this investment at the company level, the primary source of these funds will be its first residential real estate fund of Rs 500 crore.
Additionally, Integrow made two investments from its residential fund in properties located in Mumbai’s Worli and Thane micro-markets. The financial details of these transactions haven’t been disclosed.
Following these transactions, Integrow has about Rs 200 crore available as dry powder from the first residential fund which it will deploy during the remainder of the year, Yadav said.
Source : VCCircle