IL&FS Investment Managers (IIML) has announced the final close of IL&FS India Realty Fund – II (IIRF2) at $895 million, exceeding its target of $750 million. This also considerably exceeds the corpus of IIML’s first Real Estate Fund (IIRF1), which had raised $525 mn from international investors in April 2006.
IIRF1 has been fully committed.
The second fund includes commitments from a well-diversified group of investors, including State Pension Funds, Foundations, University Endowments and family offices across the globe.
“We are proud to see that international investors have reiterated their confidence in IL&FS Investment Managers and the Indian realty space,” said Shahzaad Dalal, vice chairman & managing director of IIML.
Through this second fund, IIML proposes to invest in the entire gamut of real estate space, across Tier I and Tier II cities. “The current market situation and capital scarcity provide valuable opportunities. As investors, we continue to look at investments with cautious optimism since we believe in the underlying strength of the Indian real estate market and remain confident of the long-term prospects of this sector,” said Archana Hingorani, CEO and executive director of IIML.
IIML is planning investments of $25-75 million by providing growth capital to mid-market real estate developers in India. “We have partnered with some of the most reputed real estate developers as well as nurtured some of the more upcoming developers and we expect these relationships to further deepen through Fund II,” said Hingorani.
IIML has been managing / advising private equity investments, ranging from sector specific funds like real estate, to sector agnostic Private Equity Funds.
During the course of the last 14 years, IIML raised and managed 9 Funds. It has, to date, invested in more than 90 investments and has managed 43 liquidity events. It currently manages / advises investments in excess of $2 bn across all sectors.
