A real estate credit fund, along with its sponsor and strategic partner, has raised ?450 crore for its maiden fund. The firm expects to close the final fundraising for its Real Estate Special Opportunities Fund-1 by the end of this financial year.

The fund is in the process of raising an additional ?150 crore and has seen strong interest from existing and new investors. There is significant demand for last-mile construction finance, with many projects still stuck in the completion phase.

So far, the fund has invested ?450 crore across four deals from its first fund, which has a total corpus of ?700 crore. Recent investments include ?60 crore through listed non-convertible debentures in a late-stage residential development in Bengaluru, followed by around ?105 crore in a wholly-owned subsidiary of a real estate developer for a 12.16-acre land parcel in Pune.

The fund’s objective is to invest in mid-income, affordable housing, and plotted development projects to realise value through capital in a special situations fund. It aims for an internal rate of return of 18–22% over a five-year period, with the possibility of extending for an additional two years. The fund focuses on generating substantial returns while maintaining a well-mitigated risk profile and sufficient asset backing.

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