Bengaluru-headquartered real estate investment management firm Altern Capital has launched its maiden fund targeting a total of ₹250 crore, the company said in a statement dated July 16.
The Securities and Exchange Board of India-approved category II alternative investment fund (AIF) is named Jiraaf Au India Real Estate Fund – I. It will have an additional greenshoe option of ₹100 crore, the company said.
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An alternate investment fund is a privately pooled investment vehicle (from Indian or foreign sources) that invests in alternative asset classes such as private equity or venture capital, hedge funds, real estate, commodities and derivatives. A category II AIF in India includes entities such as private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other regulator.
AI Growth Private Limited through its brands Jiraaf and Altgraaf is the sponsor of the said fund, according to a statement issued by the company.
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According to Altern Capital, its core strategy for the said fund is plotted development and last-mile funding. With a tenor of four years, the fund’s strategic focus is on reducing approval and execution risk, the statement noted.
“Our goal at Altern Capital is to redefine real estate investment by ensuring tech-based stringent investment and post-investment monitoring and delivering exceptional risk-adjusted returns for our investors,” said Navin Dhanuka, founder and CEO of Altern Capital.
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The team anticipates significant deployment in plotted development across cities such as Bengaluru, Chennai, Hyderabad and Mysuru, the company statement said. This will be trailed by last-mile funding initiatives in Bengaluru, Mumbai, Pune and Chennai, it added.
According to Altern Capital, there is a strong growing demand and quicker sales (even at the launch stage) for plotted development in Bengaluru and Mysuru, which has resulted in significant interest in plotted development projects from Grade A developers, including listed players, in the last 3-4 years.
