Integrow Asset Management, a specialized investment firm in real estate, plans to raise over Rs 1,500 crore through a commercial real estate fund. The fund aims to invest in pre-leased and revenue-generating properties in India's leading six property markets, including Mumbai, Pune, Hyderabad, Bengaluru, Chennai, and Delhi-NCR. The company aims to build a portfolio worth Rs 4,000 crore and sees commercial real estate as a hedge against inflation. The newly formed fund, led by Ashish Mundada, aims to become the sole multi-fund institution focused on real estate.
Integrow Asset Management, an investment firm specialized in real estate, intends to generate more than Rs 1,500 crore from a commercial real estate fund aimed at funding investments in India's leading six property markets. The second category of alternative investment fund intends to invest in pre-leased and revenue-generating properties spanning Mumbai, Pune, Hyderabad, Bengaluru, Chennai, and Delhi-National Capital Region.
Integrow Asset Management plans to build an investment portfolio worth Rs 4,000 crore with the newly approved fund, aiming to raise the corpus by year-end after receiving SEBI's approval. Ashish Mundada, with over 20 years of experience including a significant stint at BlackRock's New York office as director and co-founder of their private debt platform, will lead the new commercial property fund recently launched by the company.
Mundada, the head of commercial real estate (investments) at Integrow Asset Management, stated that their focus is on the six most prominent cities in India, covering more than 95 percent of Grade A office properties. The company believes commercial real estate can be a viable a hedge against inflation through increasing rents and property appreciation. Therefore, they will be focusing on whole buildings that gives them control over tenant mix, rent, and maintenance costs.
Integrow Asset Management aims to establish the India Grade A Office Fund and become the sole multi-fund institution focused on real estate. They have raised a residential real estate fund of Rs 1,000 crore and are investing in housing projects across Mumbai, Pune, and other major cities. This is a rare commercial alternative investment fund by a domestic institution.
The company has recently been granted permission and authority to provide portfolio management services (PMS). Furthermore, it can also be employed for collaborative investment in initiatives since its objective is to establish a collection worth Rs 500 crore specifically for residential projects in the area of self-redevelopment and is also exploring the possibility of procuring initial stage projects by acquiring available units of flats.
The newly formed fund, which will be active for seven years, plans to invest a sum ranging from Rs 300 crore to Rs 600 crore per asset. Its projected returns, including leverage, are estimated to reach 20 percent. The fund anticipates generating internal rates of return (IRR) between 8 percent and 8.5 percent at the property level.
Some major international and local financial firms, such as Blackstone Group, Brookfield Asset Management, Singapore's sovereign fund GIC, Canada Pension Plan Investment Board (CPPIB), Kotak Investment Advisors, Abu Dhabi Investment Authority and the Qatar Investment Authority, have been making significant investments in Indian real estate assets. In recent years, institutions have increased their investment portfolios, and commercial real estate has emerged as a significant driving force for fund inflows.
India's real estate sector received $5.15 billion in investments through 47 deals in 2022, a 19 percent surge despite an uncertain environment, reflecting confidence in the sector. In 2022, the average transaction size was $105 million, a 46 percent increase from the previous year.
Integrow Asset Management Pvt. Ltd. was incorporated on September 8, 2020, as a non-government company and registered at the Registrar of Companies, Mumbai. It is involved in all financial activities except insurance and pensions. It strives to generate value for its stakeholders by promoting collaborative ideas and efficient procedures towards transformation. It aims to connect the goals of promoting sustainable democratization of real estate using trust, vitality, and ethical principles.
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