Alternative Asset Advisors, part of the Edelweiss
group, has raised Rs 500 crore for its domestic real estate fund.
The fund, named 'Edelweiss
Real Estate Opportunities Fund', aims to capitalise on limited liquidity in the real estate market through a multi-strategy approach, focusing on six major Tier-I cities- Mumbai, NCR, Bangalore, Hyderabad, Pune and Chennai. The new approach would be applicable to both segments-residential and commercial real estate, the fund manager said on Tuesday.
joins the likes of ASK group, Kotak who have raised real estate funds
this year. Kotak is also holding talks with the UK-based CDC for an affordable housing fund. Meanwhile, HDFC and IFC have tied up to create a corpus for affordable housing fund.
Nitin Jain, CEO, Global Wealth and Asset management, Edelweiss
Group, said: “We believe that the residential real estate is poised to bounce back with existing regulation available to protect consumer interest. In addition to this, limited capital availability creates an ideal opportunity for providers of alternative sources of capital to invest in real estate. Improving business sentiments and a recovery in the demand for office space will lead to further investment opportunities.”
said its private wealth management team raised a majority of the fund corpus from their client base that includes family offices, business owners and promoters, UHNIs and corporate treasuries.
Alternative Asset Advisors manages seven funds
catering to global and domestic investors
across illiquid strategies in the country, including collateralised credit, real estate and distressed assets. The domestic real estate fund is headed by Nitin Goel.