Noida: SMC Global, a diversified financial services company with over $500 million of assets, has formed ‘SMC & IM Capitals Investment Manager LLP’, a joint venture entity, and launched its maiden $75-million fund exclusively for the Indian real estate market with a green shoe option of up to $75 mn. SMC Global and IM+ Capitals are the principal sponsors of the fund. The fund will be forming an investment committee that will comprise of investors.
The management’s plan is to raise the fund and jump-start by investing in the affordable housing projects that have all requisite approvals. The fund will also concentrate on investing against under-construction residential and commercial units at deep discounts and generate a fixed interest coupon.
People with annual household income of Rs 20 -35 lakh are usually looking for housing. The fund will be investing in projects where apartment sale price matches the buying rationale of such end users.
“The entire real estate sector is currently undergoing a transformation which is an opportunity for all the stakeholders & investors to invest for a well-defined period of time. In view of ‘Housing for all’, the government has taken up various initiatives such as reduction in interest rates or giving infrastructure status to affordable housing and these will dictate demand for housing in this segment. After a thorough market research on demand for homes, we sensed the need for affordable mid-segment housing is at a peak. Hence, to cater this segment we launched SMC IM+ Realty fund, which will invest in affordable homes,” said Abhimanyu Londhe, CEO & Head of Investments, SMC & IM Capitals Investment Manager LLP.
The implementation of RERA has made businesses get regulated in terms of operations, predictable delivery schedule and thereby avoiding time /cost over runs. The SMC IM+ Realty Fund’s core focus is to invest in such businesses which will have adequate tangible security & past performance of high customer satisfaction, thereby not only ensuring safety of fund but also return that match investor expectations.
The SEBI-registered fund is open for domestic and international individual investors, banks, HNIs and institutional investors. The SMC IM+ Realty Fund will be focusing on affordable mid-segment housing sector across key Indian cities, primarily in Mumbai, Pune and Bangalore in Phase I, followed by other cities.