South Delhi, luxe realty, 20%+ returns: Decoding GGF's investment strategy

Golden Growth Fund is bringing institutional strategy to India's most exclusive real estate markets with its boutique AIF.

 Golden Growth Fund (GGF), a Category-II Alternative Investment Fund (AIF), has announced its second high-profile land acquisition—this time in the elite Neeti Bagh neighborhood of South Delhi. And investors, particularly those seeking quality exposure to luxury real estate, should take note.

 

South Delhi’s real estate is known for its scarcity value. With only around 18,500 privately owned residential plots, most of which are tied up in family legacies or encumbered titles, acquiring clear, developable land is a feat in itself. The Neeti Bagh parcel, measuring 7,560 sq. ft., is one such rare find.

 

The land parcel  will have only four apartments in Basement+Stilt+4Floors. Each boutique apartment of size approximately 6000 sq. ft. will have all the comforts of modernity that matches the taste of the neo-rich like steam, sauna, jacuzzi, private swimming pool, landscaped area, designer fittings, Italian flooring among others.

 

Each apartment will have a separate entrance and an elevator for exclusivity and privacy.

 

South Delhi has around 18,500 privately owned residential plots, categorised as A, B, C and others by MCD, with current market value of Rs 5.65 lakh crore, presenting a huge opportunity for project development.

 

The average price of plots in Category A colonies range from Rs 7-15 lakh per sq. yd. while the average price in Category B colonies range from Rs 6-12 lakh per sq. yd.

 

The average price of plots in Neeti Bagh today stands at approximately 12 lakh per sq. yd.

 

“The Fund has received a very good response. GGF is the only fund that is focussed on South Delhi real estate market and that gives us the first-mover advantage in this vast landscape of South and Lutyens Delhi," said Ankur Jalan, CEO, Golden Growth Fund.

 

The Fund recently announced the launch of luxury floors in Anand Niketan, the construction of which is progressing at a brisk pace. The project is being developed by Grovy India, a BSE-listed real estate company.

 

"We are excited to launch our second project in Neeti Bagh after the overwhelming response we received from our inaugural project in Anand Niketan. GGF has already received 25% commitment of the investment amount in Neeti Bagh project and we aim to deliver an IRR of 20% plus," said Jalan.

 

“The South Delhi market is an end-user driven market with limited inventory and less-to-no price volatility as compared to NCR making it an ideal destination for those looking to make safe investments in real estate. To add to this, the growing need to elevate to homes with high-end amenities, rising number of nuclear families and desire to upgrade to a posher colony have driven the demand for luxury floors especially amongst the wealthy doctors, lawyers, businessmen, start-up founders, NRIs etc. in South Delhi," added Jalan.

 

Golden Growth Fund is a category II Real Estate focussed Alternative Investment Fund (AIF), a unique financial vehicle specifically designed for real estate investments in South & Lutyens' Delhi, the most posh colonies in India. 

 

GGF pools capital from multiple investors to acquire a diversified portfolio of real estate assets minimizing risks while maximizing potential returns. With a much shorter gestation period of 1.5 years, it allows investors to participate in the upscale and affluent neighbourhood with thriving commercial hubs, robust amenities and infrastructure of South and Lutyens’ Delhi.