Altern Capital Launches Maiden Real Estate Fund Targeting ₹250 Crore
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Altern Capital launches maiden real estate fund; Targets ₹250 Crore fund
Altern Capital, an investment management company specialising in real estate investments, launched its maiden SEBI-approved Category II Alternative Investment Fund (AIF) named JIRAAF AU INDIA REAL ESTATE FUND - I ("JIREF I"). The target size of this fund is ₹250 Cr, with an additional greenshoe option of ₹100 Cr. Altern Capital's core strategy for their maiden fund is plotted development and last-mile funding. The fund's strategic focus is on reducing approval and execution risk, setting it apart from its peers. The Fund's tenor is 4 years, as opposed to the typical 6-year horizon, emphasizing early project completion, quicker visibility, and reliability of principal and returns for investors, said a release. AI Growth Private Limited, founded by Saurav Ghosh and Vineet Agrawal and market leader in tech-based innovative fixed-income platforms through its brands "JIRAAF & ALTGRAAF", is the sponsor of JIREF I. Read Comments
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Altern Capital launches ₹250 crore real estate fund JIREF I
Altern Capital has launched its maiden SEBI-approved Category II Alternative Investment Fund (AIF), JIRAAF AU INDIA REAL ESTATE FUND -- I (JIREF I). The target size of this fund is ₹250 crore initially, with an additional greenshoe option of ₹100 crore. The strategic focus of JIREF I revolves around plotted development and last-mile funding in the real estate sector. It distinguishes itself by emphasizing reduced approval and execution risks, a departure from industry norms. The fund's tenor is 4 years, shorter than the typical 6-year horizon, emphasizing early project completion, enhanced visibility, and dependable principal and returns for investors. Navin Dhanuka, Founder & CEO of Altern Capital, said, " Our goal 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, and we believe our innovative approach will set new benchmarks in the industry," said, Navin Dhanuka, Founder & CEO of Altern Capital. " The fund is sponsored by AI Growth Private Limited, through its brands "JIRAAF & ALTGRAAF". SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on July 16, 2024
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Altern Capital launches maiden real estate fund with a target of ₹250 crore
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. Also Read: Strata to apply for SM REITs license to broaden fractional ownership platform; aims to raise total fund of ₹2000 crore 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. Also Read: Certus Capital to invest ₹125 crore for upcoming housing project in Chennai 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. Also Read: 64% of HNI investors prefer fractional ownership model to invest in commercial real estate 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.
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Altern Capital, a Mumbai-based investment firm, has launched its first real estate fund, JIREF I, with a target corpus of ₹250 crore. The fund aims to invest in residential projects in major Indian cities.
Altern Capital Introduces JIREF I: A New Player in Real Estate Investment
Altern Capital, a Mumbai-based investment firm, has made a significant move in the real estate sector by launching its maiden real estate fund, JIREF I (JITO Real Estate Fund I). The fund has set an ambitious target of raising ₹250 crore, with an additional greenshoe option of ₹100 crore
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.Fund Strategy and Focus
JIREF I is designed as a Category II Alternative Investment Fund (AIF) with a clear focus on the residential real estate market in India. The fund's primary strategy is to invest in mid-income and affordable residential projects across major Indian cities. This approach aims to capitalize on the growing demand for housing in urban areas while potentially offering attractive returns to investors
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.Investment Targets and Expectations
The fund has set its sights on investing in 8-10 residential projects over its lifespan. Each investment is expected to range between ₹15 crore to ₹50 crore, allowing for a diversified portfolio of projects. Altern Capital anticipates generating returns in the range of 18-22% for its investors, highlighting the potential profitability of the residential real estate sector in India
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.Market Timing and Opportunities
The launch of JIREF I comes at a time when the Indian real estate market is showing signs of robust growth. Altern Capital's decision to enter this space is backed by positive market indicators, including increased demand for housing, especially in the mid-income and affordable segments. The fund aims to leverage these favorable market conditions to generate value for its investors
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Management and Expertise
JIREF I is being managed by a team of experienced professionals led by Altern Capital's founding partners, Mukesh Tiwari and Sanjay Laxmandas. The team brings a wealth of experience in real estate investment and development, which is expected to play a crucial role in identifying lucrative investment opportunities and managing the fund's portfolio effectively
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.Investor Interest and Fund Structure
The fund has already garnered significant interest from high-net-worth individuals (HNIs) and family offices. This early traction suggests a strong appetite for real estate investment opportunities among Indian investors. JIREF I is structured as a close-ended fund with a tenure of four years and an option to extend by one year, providing a defined investment horizon for participants
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