Etonhurst Capital to Raise ₹500 Crore for Mumbai Real Estate Redevelopment
Mumbai's real estate market, constrained by limited land availability, is witnessing a surge in redevelopment projects. Etonhurst Capital Partners, a prominent investment firm, is set to raise its first real estate fund, targeting residential redevelopmen
Real EstateMumbaiRedevelopmentEtonhurst CapitalInvestment FundReal Estate MumbaiJan 23, 2025
The fund, registered as a Category-II alternative investment fund (AIF) with the Securities and Exchange Board of India (SEBI), is designed to capitalize on the growing trend of residential redevelopment projects in Mumbai.
Etonhurst Capital Partners was founded by Bamasish Paul, a former managing director at Brookfield Asset Management and AIG Global Real Estate India, and Tushar Udayan Bose, a former partner at CreditCapital Finance Partners.
For this redevelopment fund, Etonhurst has partnered with The Guardians Real Estate Advisory, which also serves as a lead sponsor.
The firm plans to source capital from high-net-worth individuals (HNIs) and family offices.
Mumbai’s real estate market is notorious for its limited land availability, which has led to a significant increase in redevelopment projects, including aging buildings, housing societies, and slum pockets.
The Etonhurst fund aims to tap into this market by investing in society redevelopment projects at the early stages, where the demand for capital is most significant.
According to Bamasish Paul, managing partner and chief executive of Etonhurst, “We see a lot of opportunities in the redevelopment space in Mumbai, yet there is a funding gap in the market.
Through this fund, we intend to invest in such projects at an early stage of development, where the need for capital is substantial.”
The fund will focus on structured debt financing and is expected to execute 10–12 transactions over the next two years, with an average deal size of ₹50–70 crore.
Etonhurst is targeting an internal rate of return (IRR) of 20–22%.
Paul adds, “We have a robust pipeline of projects and are in conversation with builders.
Going forward, for our future funds, we would look at partnering with strategic partners depending on what the theme of a particular fund.”
Mumbai’s real estate sector has experienced a strong rebound post-pandemic.
In 2024, the Mumbai Metropolitan Region (MMR) recorded the highest residential sales among India’s top seven cities, with 155,335 units sold, according to Anarock Property Advisors.
The region also led in new launches, with 134,500 units introduced last year.
This growth has attracted developers from other cities, including Bengaluru’s Prestige Group and Puravankara Ltd, as well as Gurugram-based DLF Ltd, who have entered the Mumbai market through redevelopment projects.
Corporate players like Raymond Realty have also undertaken multiple society redevelopment initiatives.
The entry of funds like Etonhurst is expected to provide much-needed institutional capital for Mumbai’s redevelopment projects, further boosting activity in the city’s land-constrained market.
Etonhurst Capital Partners is committed to leveraging its expertise and strategic partnerships to drive growth in the real estate sector, particularly in the redevelopment space.
With a robust pipeline and a clear vision, the firm is well-positioned to make a significant impact in Mumbai’s real estate market.
Frequently Asked Questions
What is the target corpus of the Etonhurst Redevelopment Fund 1?
The target corpus of the Etonhurst Redevelopment Fund 1 is ₹500 crore, with an additional ₹250 crore green-shoe option.
Who are the founders of Etonhurst Capital Partners?
Etonhurst Capital Partners was founded by Bamasish Paul and Tushar Udayan Bose.
What is the primary focus of the Etonhurst Redevelopment Fund 1?
The primary focus of the Etonhurst Redevelopment Fund 1 is to invest in residential redevelopment projects in Mumbai, particularly at the early stages of development.
How many transactions does the fund expect to execute over the next two years?
The fund expects to execute 10–12 transactions over the next two years, with an average deal size of ₹50–70 crore.
What is the internal rate of return (IRR) target for the Etonhurst Redevelopment Fund 1?
The internal rate of return (IRR) target for the Etonhurst Redevelopment Fund 1 is 20–22%.
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