"Sundaram Alternates Aims to Raise ₹1,000 Crore for Green Realty Projects Financing"

Sundaram Alternates Assets (SAA), the private equity arm of Sundaram Finance Group, is gearing up to secure approximately ₹1,000 crore from global investors to support green real estate endeavors in India.

Vikaas M Sachdeva, Managing Director of Sundaram Alternates Assets, highlighted the strategic move as an extension of their commitment to leveraging their proven track record, adept underwriting capabilities, and risk management expertise within the dynamic Indian real estate credit sector. Speaking to PTI, Sachdeva emphasized the firm's dedication to advancing its high-yield credit funds to drive real alpha in its performing credit business, alongside implementing a robust Environmental, Social, and Governance (ESG) and climate impact framework as a key investor initiative.

The focus lies on mobilizing capital from global investors, including Non-Resident Indians (NRIs) in the Gulf region, through the Series IV real estate credit fund, currently in the fundraising phase.

Karthik Athreya, Director (Alternative Credit) at SAA, indicated the target closure of the Series IV real estate credit fund within the range of ₹1,000-1,200 crore, specifically allocated for green real estate ventures. Expressing optimism, Athreya noted significant interest from investors across the GCC region, North America, and Southeast Asia.

Highlighting the firm's track record, Athreya mentioned that SAA has successfully raised and deployed around ₹3,000 crore in its private credit business over the past 5-6 years. Past funds have consistently delivered robust portfolio returns of 18-20%, with current gross investor returns standing at approximately 17%. These credit funds boast a diverse investor base of over 500 entities, including High Net Worth Individuals (HNIs), family offices, and corporate treasuries.

The announcement was made on the sidelines of the Dubai Alternative Investment Summit, underscoring the firm's international outreach and commitment to fostering sustainable investments in the Indian real estate sector.

HBL