Azure Capital to raise Rs 500 cr through a real estate fund
New Delhi: Azure Capital has said that it will raise up to Rs 500 crore through a real estate fund that focuses on commercial properties across top seven cities of India.
Azure Capital, an integrated investment company, will launch of India Realty Fund-II, a rental yield fund that focuses on commercial properties across top seven cities of India, the company said in a statement.
The size of the fund is Rs 250 crore with an additional Green shoe option of Rs 250 crore, aggregating to Rs 500 crore.
The India Realty Fund II would primarily focus on investment grade commercial properties with lease to reputed tenants in the top seven cities of the country such as Mumbai, Delhi-NCR, Bangalore, Chennai, Hyderabad, Pune and Ahmedabad.
"These projects will provide regular returns to investors with an upside of capital appreciation. The valuations presently are quite attractive as developers are increasingly looking at deleveraging their assets," Azure Capital Advisors CEO Shailesh Ghorpade said.
Ghorpade further noted that India Realty Fund-II targets such investors who have a low risk appetite. It will provide recurring yield income coupled with high and stable capital appreciation, diversified portfolio with superior risk - adjusted returns.
The deployment of the India Realty Fund II will be across 10-12 commercial properties with an average ticket size of Rs 25-30 crore.
The fund plans to raise the entire corpus within 9 months from the first close.
The India Realty Fund I had successfully invested in residential real estate projects in Bangalore and other parts of India, the company said.