Azure Capital Advisors, a Bangalore-based venture capital firm, has launched a new realty fund which would invest in Mumbai re-development projects and other mid-sized real estate projects in the country.
Speaking to Business Standard, Deepak Kumar, investment officer, Azure Capital Advisors, said that the company has floated ‘India Realty Fund I’, which is registered as a venture capital fund with the Securities and Exchange Board of India (Sebi).
“We have raised Rs 80-90 crore from our own network and will raise another Rs 110-120 crore by September 30,” he said, adding that the fund’s focus would be on the re-development projects in Mumbai, mid-size residential projects in south India, Gujarat and Maharashtra.
Launched by professionals who were earlier with Aditya Birla group, IDFC, Infosys and other companies, the company plans to raise Rs 500 crore by the end of this year.
Among others, it has Chandrashekhar Prabhu, former president of Maharashtra Housing and Area Development Authority (MHADA) and chairman of the advisory committee of the department of housing in Maharashtra government.
Kumar said that his firm expects to conclude 10-15 deals through this fund with housing societies in Mumbai. The company has identified Chembur, Andheri and two more locations in the city.
“We will offer finance and would bring in eco-system partners including construction companies, architects, investors and buyers to the table, while the societies would bring in land bank,” said Kumar. “Redevelopment projects give good returns and have less risk and competition since the process is complex and needs more expertise.”
The company plans to focus on cities which house corporates operating in the knowledge sector. The cities on Azure's radar include Chennai, Coimbatore, Bangalore, Surat and Ahmedabad.
“We will tie-up with corporate houses, who in turn will give incentive for performing employees, by which the employees will save around 10-15 per cent of the total property cost,” said Kumar.
“Our focus is on projects which can come up in 4-10 acres, primarily small/mid-size deals with limited project risk and an investment of Rs 10-25 crore,” Kumar said.
