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Time of India
04-07-2025
- Business
- Time of India
White Knights to focused bets, AlFs build their realty presence
Alternative Investment Funds are increasingly vital for India's real estate sector, providing crucial capital for land acquisition and project completion. These funds address funding gaps, accelerate project launches, and ensure timely delivery, attracting strong investor interest. With a significant rise in active AIFs and commitments, they're becoming a key source of funding, especially for stalled projects needing revival. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Alternative Investment Funds (AIFs) are supporting property developers in shoring up capital for land acquisitions and project completions, emerging as a key backbone of India's thriving real estate many as four AIFs focused on this sector were launched last year. At 14%, the real estate sector accounted for the largest share of cumulative net AIF investments in 2024.'AIFs today are doing more than filling funding gaps—they're strategically deploying capital at key stages like land acquisition and approvals, fast-tracking launches, and ensuring timely delivery,' said Amit Goyal, managing director, India Sotheby's International Realty.'We see this shift reflected in the strong investor interest and closing of the first round of Rs 500 crore, in the ASK Curated Luxury Asset Fund where India Sotheby's International Realty is the co-sponsor," said Goyal. It is the only AIF dedicated to luxury real estate. The fund plans to raise Rs 1,000 crore with a greenshoe option of Rs 500 or privately pooled funds that invest in non-traditional assets like private equity, hedge funds, and real estate offer niche, high-risk, high-reward opportunities for experienced investors.'We have recently launched SGRE Fund and our aim is to invest in those projects which are stuck due to lack of funds,' said Suresh Garg, promoter, SGRE Fund and chairman & managing director at Nirala World. 'The portfolio has scope to fund projects which are struggling to get funds from banks, financial institutions and from other sources. We are also ready to fund promoters who require infusion of initial funding for the eligibility of SWAMIH Fund.'The fund has so far provided funds to two residential projects. One comprised premium plotted developments while the other was seeking initial capital to meet eligibility of SWAMIH fund for a decade-old, stalled project under recommendation of the Amitabh Kant Committee and co-developer policy of GNIDA.'Shortage of funds and lack of effective management are the main cause of stalled projects in the region. At this stage, the projects are either eligible for revival or promoters are filing for bankruptcy,' said Dinesh Gupta, president, CREDAI Western UP. 'Currently, we have positive market trends and apart from SWAMIH funds, the sector needs more sources of alternative funds to push viable and workable projects.'According to Anarock research, the number of active AIFs has grown 36-fold over the past decade—to 1,524 as of March 5 2025 from 42 as of March 31 2013 with commitments raised increasing fivefold since FY13 and FY25, commitments raised in AIFs surged 83% compounded annually, reflecting their growing importance in the broader investment landscape.
Time of India
12-05-2025
- Business
- Time of India
SGRE Fund invests ₹125 crore in two housing projects in NCR
NEW DELHI: SGRE Fund , a real estate-focused Alternative Investment Fund (AIF), has invested Rs 125 crore in two stressed housing projects in Delhi-NCR and is looking for more properties for investments. SGRE Fund is a scheme-based fund, registered with the Securities and Exchange Board of India (Sebi) under Category II. The fund, launched by promoters of Nirala World and Sea Fund, will provide finance to those real estate companies which are struggling to get funds for the revival of the projects and their completion. It will invest in all types of residential and commercial real estate projects across Delhi-NCR, according to a statement. Suresh Garg, lead promoter of SGRE Fund, said the fund has already deployed Rs 125 crore in two projects, and it will soon deploy more funds. To expand its portfolio, SGRE Fund has also applied for the second scheme, with a total size of up to Rs 500 crore. "Any real estate company can apply for the fund from our AIF. Our legal and technical team checks the feasibility, and after the standard process of examination, they recommend a proposal to the standing committee for final go-ahead. If the project is economically viable, land title is clear and there is no legal issue with the project, then such projects will be eligible for funding," Garg said. SGRE Fund is ready to finance promoters who require to infuse initial funding for the eligibility of government-backed SWAMIH Fund . "The vision is to become real partners of real estate," said Suresh Garg, the promoter of SGRE Fund and CMD of Nirala World. The AIF will raise funds from institutional and individual investors in accordance with Sebi guidelines. This includes family offices, high net-worth individuals, insurance companies, pension funds, banks, financial institutions, sovereign funds, multilateral institutions, and other sophisticated and institutional investors. The fund is promoted by Suresh Garg of realty firm Nirala World and Sanjay Gupta, Director at Sea Fund. Nirala World has delivered more than 10 million sq ft in the residential segment. It will soon launch two new commercial projects in Greater Noida West. According to property consultant Anarock, Alternative Investment Funds (AIFs) have cumulatively infused nearly Rs 74,000 crore in the Indian real estate space till December 2024. AIF means any fund established or incorporated in India which is a privately pooled investment vehicle that collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.
Hindustan Times
02-05-2025
- Business
- Hindustan Times
SG Real Estate Fund raises ₹450 crore, disburses ₹125 crore to revive two stalled real estate projects in Noida
NCR-based SGRE Fund, an Alternative Investment Fund worth ₹2,000 crore, promoted and managed by realty company Nirala World and Venture Capital firm Sea Fund, has raised ₹450 crore to invest in real estate projects of which ₹125 crore has already been disbursed to two stuck projects in Noida. SGRE Fund is a scheme-based fund and is registered with the Securities and Exchange Board of India (SEBI) under Category II. SGRE Fund will provide finance to all types of real estate companies developing both residential and commercial projects across NCR in the form of investment and loans through debenture and equity participation. It is also open to funding stuck projects. 'Funding has already been provided to two or three projects out of a total of four to five identified. Under the first scheme, ₹450 crore has been allocated, with ₹125 crore already disbursed to two stalled projects. We remain open to supporting more projects,' said Suresh Garg of Nirala World. Two payouts totaling ₹125 crore have already been made under the SGRE Fund's first program. Another round of disbursements is expected soon, as several projects are currently undergoing due diligence, including assessments of economic viability, technical feasibility, land titles, outstanding dues, and legal clearances. To support this, the fund has applied for approvals worth ₹500 crore. Additionally, SGRE Fund has applied for a second scheme, valued at ₹500 crore, which will involve equity participation to further expand its portfolio, the company statement said. Suresh Garg, promoter of SGRE Fund, said, 'Any project in need of funding can apply to us. Our legal and technical teams assess the project's feasibility, and after completing the standard evaluation process, a proposal is forwarded to the standing committee for approval. Projects with clear land titles, no legal issues, and strong economic viability are considered eligible for funding. However, the final decision rests with the investment committee.' SGRE Fund has invested in projects stalled due to funding shortages and is open to supporting those struggling to secure financing from banks, financial institutions, or other alternative investment funds. The fund is also willing to assist promoters who need to infuse initial capital to qualify for funding under the SWAMIH scheme. 'The SGRE Fund will secure its return through equity share and debenture participation,' Garg said. The fund will be raised through third-party capital from sophisticated institutional and individual investors, in line with SEBI regulations. This includes contributions from family offices, high-net-worth individuals (HNIs), insurance companies, pension funds, banks, financial institutions, sovereign wealth funds, multilateral agencies, and other institutional investors, the statement said. Garg is a chartered accountant and chairman and managing director of Nirala World. The company has delivered over 10 million sq. ft. of residential developments, including projects like Nirala Eden Park, Nirala Estate, and the ongoing Nirala Trio. The company is also preparing to launch two new commercial projects in Greater Noida West.
Economic Times
01-05-2025
- Business
- Economic Times
SGRE Fund raises Rs 450 crore, invested Rs 125 crore across two real estate projects
SGRE Fund, an Alternative Investment Fund has raised Rs 450 crore to invest in real estate projects across the country. ADVERTISEMENT The fund has already invested Rs 125 crore across two stuck projects in Noida. The promoters of realty developer Nirala World and Sea Fund are managing the fund and will raise upto Rs 2,000 crore. The fund will provide finance to real estate companies in form of investment and loans through debenture and equity participation which are struggling to get funds for revival of the projects and their completion. The fund plans to invest in all types of residential and commercial real estate projects across Delhi-NCR region. 'Our legal and technical team checks the feasibility and after the standard process of examination, they recommend a proposal to the standing committee for final go ahead. If the project is economically viable, land title is clear and there is no legal issue with the project then such projects will be eligible for funding,' said Suresh Garg, lead promoter of SGRE Fund. SGRE Fund is scheme based fund and it is registered with the Securities and Exchange Board of India (SEBI) under Category II. The firm has applied for approval for another scheme worth Rs 500 crore. The fund will be raised from third-party capital from institutional and individual investors in accordance with SEBI guidelines. This includes family offices, high net-worth individuals, insurance companies, pension funds, banks, financial institutions, sovereign funds, multilateral institutions, and other sophisticated and institutional investors. ADVERTISEMENT The rise of Alternate Investment Funds (AIFs) has significantly transformed real estate financing in India, offering a crucial lifeline to projects struggling with lack of funding and unlocking new opportunities for developers. AIFs - privately pooled funds that invest in non-traditional assets like private equity, hedge funds, and real estate - offer niche, high-risk, high-reward opportunities suited for experienced investors. ADVERTISEMENT According to Anarock analysis, the real estate sector accounted for the largest share (15%) of cumulative net AIF investments, with Rs 73,903 crore invested in real estate out of an all-sectors total of Rs 5,06,196 crore in the first nine month of sectors benefiting from AIF investments include IT/ITeS, Financial Services, NBFCs, Banks, Pharma, FMCG, Retail, Renewable Energy, and others. ADVERTISEMENT By the end of 9M FY25, AIF investments in real estate rose from Rs 68,540 crore by FY 2024-end to Rs 73,903 crore - 8% growth in first three quarters of fiscal year 2025. The number of AIF active in the market has grown 36-fold over the past decade - from 42 by 31st March 2013 to a 1,524 AIFs as of 5th March 2025, with commitment raised increasing five-fold since 2019. Between FY2013 and FY2025, the commitment raised in AIFs has seen an impressive 83.4% compounded annual growth rate (CAGR). This is a strong testimony to their growing importance in the broader investment landscape. ADVERTISEMENT
Time of India
01-05-2025
- Business
- Time of India
SGRE Fund raises Rs 450 crore, invested Rs 125 crore across two real estate projects
SGRE Fund , an Alternative Investment Fund has raised Rs 450 crore to invest in real estate projects across the country. #Pahalgam Terrorist Attack Nuclear Power! How India and Pakistan's arsenals stack up Does America have a plan to capture Pakistan's nuclear weapons? Airspace blockade: India plots a flight path to skip Pakistan The fund has already invested Rs 125 crore across two stuck projects in Noida. The promoters of realty developer Nirala World and Sea Fund are managing the fund and will raise upto Rs 2,000 crore. The fund will provide finance to real estate companies in form of investment and loans through debenture and equity participation which are struggling to get funds for revival of the projects and their completion. The fund plans to invest in all types of residential and commercial real estate projects across Delhi-NCR region. 'Our legal and technical team checks the feasibility and after the standard process of examination, they recommend a proposal to the standing committee for final go ahead. If the project is economically viable, land title is clear and there is no legal issue with the project then such projects will be eligible for funding,' said Suresh Garg, lead promoter of SGRE Fund. SGRE Fund is scheme based fund and it is registered with the Securities and Exchange Board of India (SEBI) under Category II. The firm has applied for approval for another scheme worth Rs 500 crore. The fund will be raised from third-party capital from institutional and individual investors in accordance with SEBI guidelines . This includes family offices, high net-worth individuals, insurance companies, pension funds, banks, financial institutions, sovereign funds, multilateral institutions, and other sophisticated and institutional investors. The rise of Alternate Investment Funds ( AIFs ) has significantly transformed real estate financing in India, offering a crucial lifeline to projects struggling with lack of funding and unlocking new opportunities for developers. AIFs - privately pooled funds that invest in non-traditional assets like private equity, hedge funds, and real estate - offer niche, high-risk, high-reward opportunities suited for experienced investors. According to Anarock analysis, the real estate sector accounted for the largest share (15%) of cumulative net AIF investments, with Rs 73,903 crore invested in real estate out of an all-sectors total of Rs 5,06,196 crore in the first nine month of FY25. Other sectors benefiting from AIF investments include IT/ITeS, Financial Services, NBFCs, Banks, Pharma, FMCG, Retail, Renewable Energy, and others. By the end of 9M FY25, AIF investments in real estate rose from Rs 68,540 crore by FY 2024-end to Rs 73,903 crore - 8% growth in first three quarters of fiscal year 2025. The number of AIF active in the market has grown 36-fold over the past decade - from 42 by 31st March 2013 to a 1,524 AIFs as of 5th March 2025, with commitment raised increasing five-fold since 2019. Between FY2013 and FY2025, the commitment raised in AIFs has seen an impressive 83.4% compounded annual growth rate (CAGR). This is a strong testimony to their growing importance in the broader investment landscape.
