NEW DELHI: Golden Growth Fund (GGF), a category-II alternative investment fund, is looking to raise Rs 400 crore to deploy it in land acquisition in South Delhi and develop luxury floors.
It has closed the first round of fundraising and also acquired a land parcel in South Delhi’s upscale Anand Niketan residential colony.
Since Delhi is primarily a market with low-rise buildings, local builders redevelop property and sell the floors independently for as high as Rs 30 crore each.
“South Delhi has an extremely supply-constrained real estate market for luxury housing. We have already tied up with Grovy India for development and are looking to acquire 8-10 plots in a year,” said Ankur Jalan, chief executive of the fund.
The fund’s first project entails an investment of Rs 50 crore, including the land, and it expects to generate Rs 65 crore from the project.
According to experts, plot acquisition in the prime South Delhi market has increased as demand for luxury residences with amenities has gone up.
Builders are acquiring old assets, constructing four floors and selling them independently.
“The real estate market in South Delhi has immense potential but lacks transparency. A lot of investors are keen to invest with the right project and right developer. With this fund, investors can invest transparently and get a better return,” Jalan said.
The land acquired by the fund will be redeveloped into an ultra-luxury residential project comprising four apartments spanning a total area of about 17,000 sq ft.
The first project will be constructed by Grovy, which has completed over 100 real estate projects in Delhi. It is part of GGF’s larger strategy to aggregate prime land parcels in South Delhi and develop them into high-end residential properties.
The real-estate sector in South and Lutyens Delhi is worth over Rs 3 lakh crore, though investors kept away from exploring opportunities in the absence of reliable and fully compliant investment funds.
