Piramal Fund Management has launched a new fund - Indiareit Apartment Fund – that will acquire residential units in tier-I markets at a discounted rate. The fund will buy residential apartments in bulk purchases from developers.

The target fund size is Rs 350 crore, and has a greenshoe option of an addition Rs 350 crore, with an average deal tenure of 2-3 years per transaction. IIFL Wealth Management is acting as exclusive distributor for the first close, the company said in a statement.

“This fund has been formed over many months of conceptualisation and structuring. We are extremely heartened with the response having collected Rs 100 crore in a matter of days. This offering adds to our existing bouquet of services, that is structured equity, senior debt, and construction finance and furthers our engagement with development partners to meet their requirements,” said Khushru Jijina, Managing Director, Piramal Fund Management.

The fund is targeted at individuals who look to invest directly into real estate as an asset class. The fund has already seeded its first transaction, a Rs 50-crore investment in Mumbai, and has identified a further pipeline of similar transactions even as the fund-raising progresses, it added.

>rajesh.kurup@thehindu.co.in