Shivalik Group, an Ahmedabad-based real-estate developer, has launched an Alternate Investment Fund (AIF) to raise ₹300 crore in fast developing regions of Ahmedabad and Gandhinagar districts.
“We are perhaps the first real-estate developer in Gujarat to launch an AIF,” said Chitrak Shah, founder of the Shivalik Group. The developer recently received approval from the Securities Exchange Board of India (SEBI) for its first fund --- Shivalik Investment Fund. The proposed Category-II AIF proposes to raise ₹300 crore through private placement, including a ₹150-crore Green Shoe Option exercisable at the discretion of the investment manager.
The AIF will mobilise funds from domestic investors, including individuals and family offices, HUFs, high networth individuals, private institutions and other corporate bodies. “We have been getting a lot of inquiries from high networth individuals and non-resident Indians, who were keen to invest in Gujarat’s growth story. So we pooled this fund,” Shah added.
The AIF will invest 50-60 per cent of the pooled funds in developing upcoming areas in Ahmedabad, Sanand and Gandhinagar. About 30 per cent will be used to invest in other projects outside the Shivalik Group, while the rest will be used in funding start-ups.
The primary objective of the fund is to generate superior long-term capital appreciation from investment in entities in the real estate sector, while providing current income for its investors. “We plan to provide 17-18 per cent annual returns to our investors,” Shah said. The fund has a lifecycle of over seven years.