Axis AMC is pleased to announce the final closing of its maiden real estate fund, the Axis RERA Opportunities Fund – I (‘Axis RERA Fund’) with commitments of over Rs. 4 billion. The investors include domestic institutions, HNIs and the sponsor (Axis AMC). The fund is targeting investments (through structured debt route) in the top 8 cities of India and aims to work with developers with an established track record of delivery and who show potential and capability for future growth.
With respect to the successful close, Mr. Balaji Rao, Managing Partner – Real Estate, Axis AMC said, “The real estate market has seen trying times over the last few months. Developers have had to navigate through a liquidity crunch and a paradigm change in their business models, brought about by the implementation of GST and RERA. However, this also means that this is the opportune moment for value investors to identify and back those real estate players with strong systems and strategies, who can deliver results in these new conditions. Real estate business in India has changed, and we are looking to work with developers who can adapt to it.”
We believe real estate is an important asset class for investors. The demand for mid-income and affordable housing will likely continue to rise, backed by strong support from the government (through initiatives like RERA, PMAY, Housing for all by 2022 etc.) In addition, increasing per capita income, and the growing aspirational demand of the mid-market segment is further fuelling a potential boom in this sector, creating a new opportunity for investors.