Certus Capital to Launch Rs 500-Crore Real Estate AIF in FY25
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 CapitalKkrReal Estate MumbaiOct 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. The deals include a Rs 130 crore investment in two prime commercial real estate projects in Pune and a Rs 125 crore investment in a Casagrande Project in Chennai. Certus Capital has also invested over Rs 100-150 crore in projects in Mumbai that are in advanced stages of transaction. The company plans to invest over Rs 1,000 crore through secured credit in the real estate sector by the end of FY25.
Southern cities will account for at least 70-75 percent of the transactions in future, with the company also looking at some transactions in Hyderabad for the first time. Additionally, Certus Capital may look at Tier II cities also.
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.
Frequently Asked Questions
What is the corpus of the AIF that Certus Capital plans to launch?
Rs 500 crore
What is the expected gross yield of the AIF?
20 percent
How much has Certus Capital already invested in real estate projects?
Over Rs 450 crore
What percentage of transactions will southern cities account for in future?
70-75 percent
How much does Certus Capital plan to invest through secured credit in the real estate sector by the end of FY25?
Over Rs 1,000 crore
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