Reliance AIF, part of Reliance Capital Asset Management Company, is planning to raise Rs 1,000 crore from the domestic and overseas market to invest in real estate projects across the country, said a top company official.
The fund, including a greenshoe option of Rs 500 crore, will invest primarily in residential projects in top five property markets, including Mumbai, Delhi-NCR, Bengaluru, Pune and Chennai. The fund under the Alternative Investment Funds (AIF) category II will be investing in mid-income and affordable housing projects through structured debt. With fixed tenure of 60 months, it will be targeting 22-23% returns through these investments. Reliance AIF has concluded 44 transactions in the past four years, including 22 complete exits, and has returned Rs 1,600 crore to investors. “We have developed a skill set for raising funds and deploying them at an appropriate time in right projects,” he said.