Thursday, 23 June 2016

Indiabulls To Raise Rs1,000 Crore From NRIs For Real Estate Fund

Gurgaon: Indiabulls Alternative Investments Limited plans to raise Rs 1000 crore for a new fund from Non-Resident Indian (NRI) investors in West Asia, Asia-Pacific and Europe.



India opportunities Fund, a real estate-focused Alternative Investment Fund (AIF), allows NRI investors, along with Persons of Indian Origin (PIOs) and other foreign investors, to participate in domestic real estate investments.
It plans to initially raise Rs 500 crore and raise an additional Rs 500 crore in case of higher-than-expected demand. The fund has a tenure of four years, extendable by a year. Indiabulls Alternative Investment is both sponsor and manager of the fund.
Reserve Bank of India (RBI) released a notification in November which eased norms pertaining to foreign investments in domestic funds established as trusts. Subject to the fulfillment of certain conditions, foreign investments in AIFS, Real Estate Investment Trusts (REIT) and Infrastructure Investment Trusts (InvITS) registered with the Securities and Exchange Board of India (SEBI) would be permitted under the automatic route without subjecting the investment vehicles to restrictions under the FDI policy, the notification said.
The investment theme of the new fund will be the same as other real estate funds managed by Indiabulls, which is primarily debt and structured debt investments in under-constructuion residential projects across top property markets.
Indiabulls Asset Management Co Ltd, a unit of Indiabulls Housing Finance Ltd, is currently raising its second fund — Indiabulls high Yield Fund — that raise to raise up to Rs 1000 crore from domestic investors  to invest in residential projects in key property markets.



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