An Ahmadabad-based group of realtors has launched a Category-2 Alternate Investment Fund (AIF), one of the first of its kind, to finance real estate projects in Gujarat, Pune, Mumbai and Bengaluru in the commercial and industrial space.
The SEBI-approved Purple Elephant Realty Fund will have a fund size of Rs. 600 million with a greenshoe option of Rs. 400 million. The minimum ticket size per transaction will be Rs. 100-150 million with an investment period of 24-40 months.
“The fund will have primary focus on Gujarat with prominent cities of Ahmadabad, Surat and Vadodara,” Monil Parikh, Managing Partner of the company is quoted as saying.
“There will also be an option to invest in projects coming up in Pune, Mumbai and Bengaluru. The minimum capital commitment required to invest in the fund is Rs. 10 million and the expected return on the investment is likely to be around 20-25 per cent over a period of 18-24 months post final closing of the fund,” he added.
The recently-launched fund has already received commitments worth Rs. 100 million from three investors, Parikh said.
“During the entire investment process, there will be regular market surveys, close monitoring to identify potential projects with a strong income stream and strategized exits,” said company CEO Anup Shah.