Prime Securities Launches ₹1,000-Cr Real Estate AIF; Targets Major Cities
Prime Securities, a listed Sebi-registered merchant banker, has announced the launch of the Prime Litmus Real Estate Opportunities Fund, targeting a corpus of ₹1,000 crore. This includes a greenshoe option of ₹250 crore, with the primary target corpus set at ₹750 crore.
The Category II Alternative Investment Fund (AIF) will focus on structured credit investments in under-construction real estate projects. The fund will operate in major markets such as the Mumbai Metropolitan Region, National Capital Region (NCR), Bengaluru, Chennai, Hyderabad, and Pune.
The Prime Litmus Real Estate Opportunities Fund will primarily invest in self-liquidating real estate projects backed by established developers. The emphasis will be on strong cash-flow visibility and robust security structures. The fund aims to generate target annual returns of 18-20% through conservative underwriting and asset management practices.
Prime Litmus Investment Management Ltd, a joint venture between Prime Research and Advisory Ltd (a subsidiary of Prime Securities Ltd) and Litmus Global Services LLP, will manage the fund. This launch marks a significant milestone in Prime Securities' expansion into the Alternative Investment Fund (AIF) management sector.
According to Prime Securities Director Akshay Gupta, the launch of the Prime Litmus Real Estate Opportunities Fund represents Prime Securities' commitment to creating and diversifying investment platforms to address evolving investor needs. Gupta noted that India's real estate sector is undergoing a structural transformation led by consolidation, formalization, and increasing institutional participation.
Apoorv Kumar, Managing Partner of Litmus Global Services LLP, emphasized the platform's aim to provide solution-oriented capital while maintaining strong governance and transparency standards. The fund's focus on self-liquidating projects and conservative underwriting is designed to mitigate risks and ensure high returns for investors.
The launch of this AIF is expected to boost the real estate sector by providing much-needed liquidity and supporting the development of high-quality projects in key urban centers across India.
