Sundaram Alterantes Targets ₹2,000 Crore Real Estate Fund by March
Sundaram Alterantes, the alternative investment arm of the Sundaram Finance group, announced on Monday its plans to raise up to ₹2,000 crore in a real estate fund by March this year. The company has already raised ₹1,000 crore in the SA Real Estate Credit Fund V over the last three months and is aiming to raise an additional ₹500-1,000 crore by the end of March, as per an official statement.
As the fundraise progresses toward its final close, the focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships. Karthik Athreya, Managing Director of SA, emphasized, “Our commitment to these principles is unwavering, and we are confident in the potential of the real estate sector.”
The SA Real Estate Credit Fund V is being positioned as the first ESG-aligned offering in the real estate sector. It has attracted commitments from a diverse range of investors, including insurance companies, family offices, corporate treasuries, and ultra-high-net-worth individuals, along with a sponsor commitment from the Sundaram Finance group.
The fund will be deployed in performing credit opportunities in the residential sector. SA prioritizes capital protection and downside risk management through conservative loan-to-value structures and robust collateral coverage. This approach has been a cornerstone of the company's strategy since 2017, when it began raising real estate credit funds.
Since 2017, Sundaram Alternates has raised over ₹3,800 crore across five real estate credit funds. The company has consistently delivered an internal rate of return of 18-19% and maintained a 'zero capital loss' record, even during challenging times such as the NBFC liquidity stress, RERA and GST implementation, and the COVID-19 pandemic.
The success of these previous funds has built a strong foundation for the SA Real Estate Credit Fund V. Sundaram Alterantes is confident that this fund will continue to meet the financial and ESG expectations of its investors, contributing to the growth and stability of the real estate sector in India.
