Dewan Housing Finance Corporation’s (DHFL) fund management arm ArthVeda Fund Management (AVFM) has launched its second real estate fund - ArthVeda Star. The fund, which is open for domestic institutions and high net-worth individuals aims to raise Rs 200 crore, with a greenshoe of Rs 100 crore; and will invest in greenfield residential projects.
ArthVeda Star Fund will be invested in middle income housing projects, with 75% of its investment in 16 tier-II and tier III cities and metro outskirts across India. The projects will be sold at prices ranging from Rs. 2,000 to Rs. 4,000 per sq. ft. The investment ticket size of the fund deployment will be between Rs 5 crore and Rs 20 crore with investment duration of 24-36 months and a maximum extension of 18-24 months.
The fund aims to invest in equity or equity like instruments in Special Purpose Vehicles (SPVs), having an active control of each SPV with an ownership of between 51% up to 75%.
The strong lending expertise of DHFL, gives an edge to ArthVeda Star Fund to deliver high returns with low risks to the investors. ArthVeda Star Fund will not invest in any of the group companies of DHFL.
ArthVeda Star will leverage on DHFL’s presence to expand its capability to monitor projects of local developers and mitigate investment risks, as it will be strongly backed by the technical expertise of over 527 employees of DHFL in the targeted 16 cities.
