Alternative investment management firm Arnya Realestates Fund Advisors is looking to raise over Rs 1,000 crore through its maiden real estate debt fund to invest across India’s top eight property markets.
Arnya Real Estate Fund – Debt, with an additional green-shoe option of Rs 1,000 crore, will make early-stage growth investments predominantly in residential projects with some commercial component in these cities through structured debt, executives said.
It has already secured commitments of Rs 375 crore from a diverse group of investors including domestic family offices, ultra-high net-worth individuals (UHNWIs) and HNIs.
“The first close of the Arnya Real Estate Fund – Debt is a testament to the trust our investors have placed in us,” Sharad Mittal, founder and CEO of Arnya Realestates Fund Advisors, told ET. “We are committed to building an independent, real estate-focused investment management firm that offers a comprehensive range of products across debt, rental, and equity in the real estate sector.”
Registered as a category II alternative investment fund (AIF) with markets regulator Sebi, the fund, backed by an independent team of professionals, is planning to focus on targeting tier-I developers with robust execution and sales track record.
Mittal said the fund aims to leverage its deep market expertise and strategic relationships to deliver superior performance and long-term value to its investors.
It is looking to generate an internal rate of returns of over 20% through investments in mid-market projects.
“We are working on a robust deal pipeline and the first transaction is expected to be concluded in the next one month itself. The entire fundraising under this fund is likely to be concluded by the end of this year,” said Mittal who has so far overseen investments worth more than Rs 10,000 crore across 175 projects in India.
The Indian residential real estate sector across the affordable, mid-income, and premium segments has seen remarkable growth in recent years, driven by a surge in demand for homes, policy reforms, and urbanisation.
Additionally, stable interest rates and growing disposable incomes have spurred homebuyers to invest, resulting in robust sales across key cities.
Institutional investors are increasingly eyeing this asset class, recognising its long-term growth potential. With increasing confidence in regulatory frameworks like the Real Estate Regulatory Authority (RERA) and tax reforms, the sector has become more transparent and organised, making it an attractive option for global and domestic investors alike.
