The five-year long close-ended alternative investment fund has opened for subscription to the public and is planning to raise Rs 750 crore. The minimum subscription to the fund is Rs. 1 crore.
The fund’s objective is to invest in high yielding debentures and mezzanine securities of Indian entities backed by real assets that may include real estate, logistics, hotels and healthcare facilities.
Investments will predominantly be backed by hard real estate collaterals, access to cash flows and other securities designed to protect capital and return an attractive internal rate of return on a gross basis, the asset manager said.
The fund will invest its corpus predominantly in South Indian real estate with opportunistic investments in Maharashtra and the national capital region.
“We remain prudent with our investments yet see attractive opportunities ahead of us – new deal opportunities, a readjustment of inventory supply, and a resurgence of refinancing – on the back of COVID disruptions,” said Vijayendiran R, chief executive officer at Sundaram Alternates.
Sundaram Alternates said that the fund will be managed by Kumaran Chandrasekaran with Karthik Athreya acting as head of strategy.