Altem Capital has unveiled the JIRAAF AU INDIA REAL ESTATE FUND - I (IREF I), targeting INR 250 crore (about USD 30 million) to support India's real estate sector, with a greenshoe option for an additional INR 100 crore (around USD 12 million). The fund aims to invest in plotted developments and provide last-mile funding up to INR 100 crore for developers nearing project completion. As a Category II Alternative Investment Fund (AIF), IREF I offers investors access to diverse real estate opportunities with a four-year investment horizon.
Altem Capital, an investment management company, has launched a new fund focused on India's real estate sector. The fund, named JIRAAF AU INDIA REAL ESTATE FUND - I (IREF I), is designed to support development with a target size of INR 250 crore (approximately USD 30 million USD). There's also a greenshoe option to raise an additional INR 100 crore (approximately USD 12 million USD) if there is strong investor interest.
JIRAAF AU IREF I will target investments in two key areas. The first is plotted developments. These are projects where land is divided into individual plots and sold to buyers for residential or commercial construction. The fund's investment in these projects can help to increase the availability of land for construction.
The second area of focus is last-mile funding. This refers to financial assistance of up to INR 100 crore provided to developers in the final stages of a project to help them complete construction. Last-mile funding can be crucial for developers, and by providing this type of support, the JIRAAF AU IREF I fund has the potential to help bring new properties to market. Ultimately, this could contribute to a wider variety of housing and commercial options for buyers.
It's important to note that JIRAAF AU IREF I is a category II Alternative Investment Fund (AIF). AIFs are investment vehicles that offer investors access to a broader range of assets than traditional mutual funds. However, they also typically involve higher risks and require a longer four-year investment horiz