Aditya Birla Real Estate Fund looking to raise Rs1,000 crore

Aditya Birla Real Estate Fund has invested about Rs.90 crore in buying apartments in Signia Isles, a luxury residential project of Sunteck Realty Ltd in Mumbai’s Bandra-Kurla Complex, according to two people familiar with the development.

With this, the Rs.1,100 crore fund has deployed its entire corpus across 13 transactions.

Having invested its maiden real estate fund, Aditya Birla Real Estate Fund, part of Aditya Birla Financial Services Group, is planning to go ahead and start raising its second fund early next year that will invest in residential projects. It is aiming to raise about Rs.1,000 crore.

Sunteck Realty is developing three luxury residential projects in Bandra-Kurla Complex—Signature Island, Signia Pearl and Signia Isles. Prices in Signia Isles are about Rs.42,000-45,000 a sq ft. Earlier this year, the Mumbai-based developer acquired another plot of land in the area to develop a premium commercial office project through a joint development model.

“Sales have been good in Signia Isles and we are planning to start delivery of the apartments in the project by mid-2016,” said Kamal Khetan, chairman and managing director, Sunteck Realty.

The investment has been made in the form of equity through non-convertible debentures (NCDs).

An Aditya Birla spokesperson declined to comment.

With the Sunteck Realty deal, Aditya Birla Real Estate Fund has done five transactions that involve bulk buying of apartments, said one of the people mentioned above. Both of them declined to be named.

In March, realty firm Ozone Group raised Rs.150 crore from the fund for its Metrozone project in Chennai, by selling residential stock in the project in a bulk-buying deal. It also bought stock worth Rs.85 crore in a suburban Mumbai project being developed by Radius Developers in a structured equity transaction.

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