one of India's leading and fastest growing full services
securities firm today announced its entry in real estate
private equity with the launch of the 'Real Estate Opportunities
Fund' (AR REOF).
REOF is a close-ended fund for domestic and overseas investors
with a targeted corpus of Rs500 crores and is targeted
at high net worth individuals as well as financial institutions
in India and overseas.
to Amit Rathi, managing director, AnandRathi Securities
said, "Due to the local nature of real estate and
complexity of transactions, its not easy for an investor
to invest on their own in different cities and locations.
A real estate fund provides investors a platform to diversify
their real estate investments in various markets".
AnandRathi Realty Fund will invest in equity and equity-linked
instruments of real estate companies and focus on growing
markets in such as Pune, Bangalore, Hyderabad, Chennai
and other cities that are witnessing substantial urban
development. The fund's investment strategy will focus
on acquiring secured rental income producing real estate
assets with quality blue chip tenants and picking up equity
stakes in specific real estate projects being developed
by reputed developers.
Sumit Anand, CEO, AR Venture Funds, "Our key investment
decision variables will comprise the demand supply dynamics,
the promoters background and the project fundamentals
including a review of the exit options for the fund. The
legal and title issues will be a critical area of due
diligence for us in setting our investment criteria."
real estate represents a considerable share of fund allocations
by long-term institutional investors. In the US, Real
Estate Investment Trusts (REITs) manage over USD 500 bn
in real estate assets," continued Sumit Anand.
Anand Rathi (AR) is a rapidly expanding full-service securities
firm founded in 1994 stock broker Anand Rathi to provide
to customers in Mumbai. The group operates through over
100 locations in India and its operations extend to Bangkok
& Dubai as well.