Indiareit to close Rs 1,000 cr domestic fund next month

Indiareit Fund Advisors, promoted by Ajay Piramal Group, is looking to close its Rs 1000 crore domestic fund next month, said a executive in the group.

The fund manager has already raised Rs 800 crore for the fund and looking to raise the remaining amount soon. Though Indiareit has applied with Department of Industrial Policy and Promotion (DIPP) to get investments from non resident Indians for the fund recently, it is yet to get approvals for the same.

"The approvals have not come from DIPP , hence we will close the fund with investments from other investors," the executive said,

The domestic fund will invest in residential properties in Mumbai, Chennai, Bangalore, NCR and other cities and looking at internal rate of returns of over 24% on its investments.

Similarly, Indiareit is looking to do first closure of $75 million for its new offshore fund by March. The fund has a corpus of $350 million and will invest in FDI compliant projects.

Indiareit manages funds worth over $1 billion across the offshore funds, domestic funds and third party mandates.