IIFL raises Rs 750 crore for second realty fund

Local financial services firm India Infoline (IIFL) has raised Rs 750 crore for its second real estate fund and has received an additional commitment of Rs 250 crore from both local institutional and high net-worth investors to co-invest with the fund, signalling the return of bullishness in the real estate sector after a slump of two years.

"The Rs 750-crore fund will now raise an additional Rs 250 crore as co-investment from investors on a deal-to-deal basis," a senior company executive said.

"Real estate continues to be a part of investors' portfolio and people are investing with funds that have an established track record," said Balaji Raghavan, CEO, IIFL Realty said.

According to Raghavan, the five-year fund will look to generate between 22% and 23% internal rate of return — a measure to judge a fund's performance. "The focus of the fund will be on structured debt transactions with equity upside for investors." This is IIFL's second fund after it raised Rs 660 crore through its first fund in 2011. "The first fund has been fully deployed and we have made some quick exits and returned around 40% capital to the investors already," Raghavan added.

The first fund exited three projects generating between 22% and 28% returns. "Few more exits have been planned from the first fund and we are hopeful of announcing them soon," he said.

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MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.

Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.