IDFC Alternatives which was previously known as IDFC Private Equity Company Limited is in quest to raise 300 million dollars fund to invest in the Indian real estate sector as per a source in the vicinity of the development company. IDFC Alternatives, the private equity arm of Infrastructure Development Finance Company Limited, offers growth capital to companies functioning in India. The firm with 3.4 billion dollars assets under management is looking to invest in transportation and logistics, oil and gas, power, clean tech, telecom, social infrastructure, urban infrastructure, rural and agricultural infrastructure sector.

The previous real estate focused fund by IDFC Alternatives was enthusiastic about commercial real estate or office spaces but this new fund of 300 million dollars is intended to be invested in the domestic residential sector. This is expected to be one of the gigantic real estate focused funds in the current financial year. The Mumbai-based firm may hit the headlines with its fundraising endeavours in the upcoming quarter and would find prospects in affordable housing, as conveyed by a person with know-how about the contract. The new fund would be hoisted from foreign limited partners (LPs), primarily from US and Europe.

Although MK Sinha, CEO at IDFC Alternatives, did not make any comments about the prospective fundraising but he alleged about other real estate-focused funds. He told that the company is buoyant about the impending areas in real estate as that of structured debt, mid-income housing, student housing and warehousing. IDFC Alternatives have already publicized the first close of the second fund in the structured debt area and anticipate to do the final seal in the next month or two.

The company founded in 2002, had secured about 71 million dollar that is Rs. 475 crore in May under its real estate focused IDFC Score Fund. This fund will primarily endow in residential projects in the pinnacle cities that are Mumbai, Bengaluru, Chennai, Delhi-National Capital Region, Hyderabad, Pune, and Kolkata. The private equity firm is now in pursuit to escalate the fund to Rs. 750 Crore. The commercial real estate has been a hot cake recently and industry experts anticipate that this may lead to setting up real estate investment trusts.

The firm is paving its way to raising another fund of 400 million dollars that would be invested in infrastructure supporting sectors.

Curated by editor at  Wienerberger India

Sources: Economictimes, Livemint

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