Indiabulls to raise Rs 1,000 cr from NRIs for real estate fund

Indiabulls Alternative Investments Ltd plans to raise Rs.1, 000 crore for a new fund from NRI investors based in West Asia, Asia-Pacific and Europe.

According to a published report, India Opportunities Fund, a real estate-focused, alternative investment fund (AIF), allows NRI investors, along with persons of Indian origin (PIOs) and other foreign investors, to participate in domestic real estate investments.

It plans to initially raise Rs.500 crore and an additional Rs.500 crore in case of higher-than-expected demand. The fund has tenure of four years, extendable by a year, said the report.

Indiabulls Alternative Investments is both sponsor and manager of the fund.

In November, the Reserve Bank of India (RBI) had eased norms pertaining to foreign investments in domestic funds established as trusts.

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“India Opportunities Fund allows NRIs and other foreign investors to participate in domestic real estate investments managed by professional fund managers, thereby avoiding the risks, pitfalls and paperwork that come along with direct real estate investments”, a senior Indiabulls Asset Management was quoted in the media.

The investment theme of the new fund will be the same as the other real estate funds managed by Indiabulls, which is primarily debt and structured debt investments in under-construction residential projects across top property markets, said the report.

Indiabulls ventured into the real estate private equity business in February 2015, when it launched its Indiabulls Real Estate Fund, a Rs.500-crore pure-debt fund, with a Rs.100 crore greenshoe option.