Arnya Realestates' New Debt Fund to Transform Property Markets

Debt Fund Focused on Growth

Arnya Realestates Fund Advisors is set to raise over Rs 1,000 crore through its inaugural real estate debt fund targeting the top eight property markets in India. Known as the Arnya Real Estate Fund – Debt, with an additional green-shoe option of Rs 1,000 crore, this fund will primarily make early-stage growth investments in residential projects, alongside some commercial components.

Investor Confidence

Having secured commitments of Rs 375 crore from a diverse investor base, including domestic family offices and ultra-high net-worth individuals (UHNWIs), the fund showcases significant trust from investors. Sharad Mittal, founder and CEO, remarked, The first close of the Arnya Real Estate Fund – Debt is a testament to the trust our investors have placed in us.

Strategic Focus and Targets

• Registered as a Category II alternative investment fund (AIF) with SEBI, the fund aims to engage with tier-I developers.
• Mittal emphasized leveraging their market expertise to deliver attractive performance.
• Aiming for internal rates of return above 20%, they have been developing a promising deal pipeline.

This initial fundraising round is anticipated to conclude by year's end. With the Indian residential real estate sector experiencing remarkable growth owing to urbanization, policy reforms, and stable interest rates, the Arnya fund is well-positioned to capitalize on emerging opportunities.

A Bright Future for Property Markets

As institutional investors increasingly explore this sector, the attractiveness of regulatory frameworks has paved the way for more investments. The rise in homebuyer confidence ensures that this alternative investment will continue to gain traction in the financial market.