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Sundaram Alternates to raise Rs.1,500-Cr for fourth realty private credit fund

Economic Times  

Sundaram Alternates Assets, a subsidiary of the Sundaram Group, is planning to raise INR 1,500 crore through its fourth real estate private credit fund, the Private Credit High Yield Real Estate Fund IV that will focus on investments in growth and special situation opportunities. The targeted mop-up for the fund includes a green-shoe option of INR 750 crore. In line with its earlier three real estate credit funds, the fund will seek to provide investors access to a diversified portfolio of secured real estate investments, with an emphasis on self-liquidating residential projects. It will also support last-mile financing, project acquisitions, rescue financing with superior returns. Around 70-75% of the fund's allocation will be directed towards self-liquidating projects with a focus on south India micro-markets and secured cash flows from post-approval projects. The remaining 25-30% will be tactical or opportunistic investments that provide higher returns to boost portfolio performance. The fund will focus on sub-INR 100 crore deals. It will target gross deal returns ranging between 18-22% on a senior secured basis.