ArthVeda Fund Management, a unit of Dewan Housing Finance Corp. said on Tuesday, December 6, it plans to raise Rs.2 billion (about $40 million) to invest in greenfield real estate projects.
The fund, which is open for domestic institutions and high net-worth individuals, has a greenshoe option of raising another Rs.1 billion, it said in a statement.
The fund will invest in middle income housing projects, ranging Rs.1.5 million to Rs.4 million per unit, with most of the investments in tier-II and tier III cities and metro outskirts across India, it said.
The ticket size of the fund deployment will be between Rs.50 million and Rs.200 million with an investment duration of 24-36 months, it said.
Private equity investment in Indian realty was marginally down in the first nine months the year to about $784 million, from $817 million the same time last year, data from industry tracker VCCircle.com, showed.
Domestic fund houses including Kotak Real Estate Fund, IndiaReit and ASK Investments are all in the process of raising funds of about $1 billion, fund officials said.
