Sundaram Alterantes to Raise Rs 2,000 Crore Real Estate Fund

Sundaram Alterantes announced plans to raise a Rs 2,000 crore real estate fund by March. The firm has already raised Rs 1,000 crore, aiming for an additional Rs 500-1,000 crore. Highlighting its ESG alignment, the fund, primarily for the residential sector, prioritizes capital protection and long-term investor relationships.

Sundaram Alterantes, a part of the Sundaram Finance group, has set its sights on raising a new real estate fund totaling Rs 2,000 crore by March. The announcement, made Monday, follows the recent acquisition of Rs 1,000 crore in its SA Real Estate Credit Fund V over the past three months.

The company is seeking an additional Rs 500-1,000 crore, emphasizing disciplined capital deployment and protection while nurturing long-term investor relationships. According to Managing Director Karthik Athreya, the fund distinguishes itself through its commitment to ESG-aligned investments attracting diverse investors including insurance firms, family offices, and corporate treasuries.

Targeting the residential sector, Sundaram Alterantes aims to manage risk through conservative structures and collateral coverage. Since 2017, they've raised Rs 3,800 crore across five funds, showing resilience through challenges like NBFC liquidity stress and the Covid-19 pandemic, by maintaining a 'zero capital loss' record and delivering 18-19% returns.

(With inputs from agencies.)