Arnya RealEstates Marks First Close of ₹375 Crore for Maiden Fund
Arnya RealEstates Fund Advisors raises ₹375 crore for its maiden real estate fund, with a focus on providing early-stage growth capital to residential projects.
Real EstateInvestmentFundArnya RealestatesMaiden FundReal Estate NewsSep 08, 2024
The firm, founded by Sharad Mittal, former executive director and CEO of real estate funds at Motilal Oswal Alternates, aims to offer a range of real estate investment products, including debt, rental, and equity investments. Registered as a Category II Alternative Investment Fund (AIF) with market regulator Sebi, Arnya's first fund will focus on providing early-stage growth capital in the form of structured debt to residential projects in top eight cities.
According to Sharad Mittal, founder and CEO of Arnya RealEstates Fund Advisors, the residential sector has recovered well and is expected to continue to grow in the coming years. As the market expands, the capital requirements of developers looking to expand will also increase. Arnya will address a developer's funding requirement for land payments, approvals, etc. in the first stage of a project.
The remaining ₹625 crore of the fund corpus will be raised by March 2025. The real estate sector has seen a sharp turnaround in the aftermath of the pandemic, with a revival in demand from home buyers fuelling a rise in residential sales. Developers have also been emboldened to shop for land parcels.
Arnya is in active discussions with three developers for potential investments and plans to close its first transaction in the next two months. The average deal size will be between ₹80 and ₹125 crore, and it will combine the fund's investment with co-investments from investors.
A recent report by JLL and Propstack highlights the opportunities in Indian real estate, estimating that the long-term debt requirement in the residential market will amount to nearly ₹430,000 crore till 2026. Innovative and customized funding structures are needed to support developers at different stages, offering a lot of opportunity for alternative investment funds.
About Arnya RealEstates Fund Advisors Arnya RealEstates Fund Advisors is an alternative investment management firm founded by Sharad Mittal in December 2022. The firm aims to offer a range of real estate investment products, including debt, rental, and equity investments.
About Motilal Oswal Alternates Motilal Oswal Alternates is a leading alternative investment management firm in India. Sharad Mittal, founder of Arnya RealEstates Fund Advisors, was previously the executive director and CEO of real estate funds at Motilal Oswal Alternates.
About JLL JLL is a leading professional services firm specializing in real estate and investment management. The firm provides a range of services, including advisory, brokerage, and property management.
About Propstack Propstack is a leading real estate data and analytics firm in India. The firm provides data-driven insights and solutions to real estate developers, investors, and other stakeholders.
Frequently Asked Questions
What is the target corpus of Arnya Real Estate Fund – Debt?
The target corpus of Arnya Real Estate Fund – Debt is ₹1,000 crore, with a green-shoe option of another ₹1,000 crore.
What type of investments will Arnya RealEstates Fund Advisors offer?
Arnya RealEstates Fund Advisors will offer a range of real estate investment products, including debt, rental, and equity investments.
What is the focus of Arnya's first fund?
Arnya's first fund will focus on providing early-stage growth capital in the form of structured debt to residential projects in top eight cities.
How much of the fund corpus has been raised so far?
Arnya RealEstates Fund Advisors has raised ₹375 crore, marking the first close of its maiden real estate fund.
What is the estimated long-term debt requirement in the residential market till 2026?
According to a report by JLL and Propstack, the estimated long-term debt requirement in the residential market will amount to nearly ₹430,000 crore till 2026.
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