The real estate arm of IDFC Alternatives Limited on Monday announced the final closure of its third real estate fund at R760 crore. The company said that a significant portion of the capital has been raised from its existing investor base.
The new fund called IDFC SCORE is a structured credit fund focused on the residential sector which aims to provide fully secured but flexible debt to real estate developers. The fund will predominantly invest in approved residential projects in the top seven cities across the country (MMR, Bangalore, Chennai, NCR, Hyderabad, Pune & Kolkata).
“This is another milestone for our real estate investments business that has been expanding its footprint steadily. We have been singularly focused on steady deployment and timely exits in all our current funds and plan to execute on the new fund in the same manner.” MK Sinha, managing partner & CEO, IDFC Alternatives said. “Real estate markets continue to be slow and the need for capital remains high,” he added.
“Through the IDFC SCORE Fund, we intend to address the need for flexible and structured debt within real estate capital markets. We hope to create a high quality portfolio and a superior investing experience for our investors,” Ritesh Vohra, partner – real estate, IDFC Alternatives said.
Company officials added that IDFC Proprietary Office Fund (R700 crore) has fully exited generating a 22% IRR. The IDFC Real Estate Yield Fund has committed its entire corpus of R750 crore and returned over R350 crore to its investors within 30 months of fund raising.