Certus Capital Set to Launch Rs 500-Crore Real Estate Alternative Investment Fund
Certus Capital, an institutional real estate investment platform, plans to launch its first credit-focused alternative investment fund (AIF) with a corpus exceeding Rs 500 crore in FY25.
Real EstateAlternative Investment FundAifCertus CapitalKkrPuneChennaiMumbaiHyderabadTier Ii CitiesReal Estate PuneOct 04, 2024
The company has already closed about Rs 450 crore of the pipeline in three different transactions and hopes to commit the rest by the end of the current fiscal. Among the last transactions, the company invested Rs 130 crore in two prime commercial real estate projects in Pune through its secured bonds platform in March 2024. These projects are being developed by Mittal Brothers, a Pune-based developer with a track record of 26 projects encompassing over 65 lakh square feet over the past 25 years.
In another deal, the company invested Rs 125 crore in a Casagrande Project in Chennai. The company said it has also invested over Rs 100-150 crore in projects in Mumbai that are in advanced stages of transaction. 'We want to increase our commitment to about Rs 1,500-2,000 crore within the next 12-18 months. We are majorly looking at post-RERA projects with a healthy project timeline of 3-3.5 years for the additional transactions,' Khandelia said.
The company added that the southern cities will account for at least 70-75 percent of the transactions in future. 'We might also look at some transactions in Hyderabad for the first time. Additionally, we may look at Tier II cities also,' he added.
Since its inception in 2018, Certus Capital has evaluated over Rs 40,000 crore of real estate credit exposure forming part of NBFCs and housing finance companies. It has also advised foreign institutional investors on nearly Rs 10,000 crore of closed investments/platform commitments in real estate credit and warehousing space. Foreign investors participated in over $2 billion of real estate credit opportunities, offering around 18 percent secured returns, over the last three years.
Frequently Asked Questions
What is the corpus of the alternative investment fund (AIF) that Certus Capital plans to launch?
Rs 500 crore
What is the investment target of Certus Capital in the real estate sector by the end of FY25?
Over Rs 1,000 crore
Which cities will account for the majority of transactions for Certus Capital in the future?
Southern cities, including Hyderabad and Tier II cities
What is the timeline for the additional transactions that Certus Capital plans to undertake?
3-3.5 years
How much has Certus Capital evaluated in real estate credit exposure since its inception in 2018?
Over Rs 40,000 crore
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