Sundaram Alterantes Targets Rs 2,000 Crore Real Estate Fund by March

MUMBAI, Jan 5: Sundaram Alterantes, the alternative investment arm of the Sundaram Finance group, has announced its plans to raise up to Rs 2,000 crore for its real estate fund by March this year. The company has already raised Rs 1,000 crore in the SA Real Estate Credit Fund V over the last three months and aims to raise another Rs 500-1,000 crore by March, as per an official statement.

Karthik Athreya, Managing Director of Sundaram Alterantes, stated, “As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships.” The fund is designed to attract commitments from various sources, including insurance companies, family offices, corporate treasuries, and ultra-high-net-worth investors, in addition to the sponsor commitment from the Sundaram Finance group.

The SA Real Estate Credit Fund V is the first ESG-aligned offering in the realty sector. ESG stands for Environmental, Social, and Governance criteria, which are increasingly important for investors looking to make socially responsible investments. The fund will be deployed in performing credit opportunities in the residential sector, with a strong emphasis on capital protection and downside risk management. This is achieved through conservative loan-to-value structures and robust collateral coverage.

Since 2017, Sundaram Alternates has raised over Rs 3,800 crore across five real estate credit funds. The company has consistently delivered an internal rate of return of 18-19 percent and has maintained a ‘zero capital loss’ record, even during challenging periods such as the NBFC liquidity stress, the implementation of RERA and GST, and the Covid-19 pandemic. These achievements highlight the company’s commitment to prudent investment strategies and strong risk management practices.

The success of Sundaram Alternates in the real estate sector is a testament to its expertise and the trust it has built with investors. As the real estate market continues to evolve, the company is well-positioned to capitalize on new opportunities while maintaining its focus on sustainability and long-term value creation.