Sundaram Alternates’ ESG-aligned real estate credit fund, SA Real Estate Credit Fund V, has secured capital commitments worth Rs 1,000 crore from an investor base that includes insurance companies, family offices, corporate treasuries, and ultra-high-net-worth individuals.
The fund’s target corpus is Rs 1,500–2,000 crore, the alternative investment arm of the Sundaram Finance Group said.
The fundraise, which began in October, is expected to conclude by March. It also includes a sponsor commitment from the Sundaram Finance Group.
“As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships,” said Karthik Athreya, Managing Director, Sundaram Alternates.
The fund’s credit strategy will focus on senior secured, amortising lending to brownfield, cash-generating residential projects. It prioritises capital protection and downside risk management through conservative loan-to-value structures and collateral coverage, the group said.
Sundaram Alternates has raised over Rs 3,800 crore across five real estate credit funds, delivering internal rate of returns in the range of 18–19%.
Investor confidence in ESG-integrated private credit continues to rise as the sector emerges as a meaningful solution to India’s real estate financing needs. The Indian real estate sector is projected to reach $1 trillion by 2030, contribute 13% to GDP, and is supported by strong indicators such as office leasing and investment inflows.
The fund’s target corpus is Rs 1,500–2,000 crore, the alternative investment arm of the Sundaram Finance Group said.
The fundraise, which began in October, is expected to conclude by March. It also includes a sponsor commitment from the Sundaram Finance Group.
“As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships,” said Karthik Athreya, Managing Director, Sundaram Alternates.
The fund’s credit strategy will focus on senior secured, amortising lending to brownfield, cash-generating residential projects. It prioritises capital protection and downside risk management through conservative loan-to-value structures and collateral coverage, the group said.
Sundaram Alternates has raised over Rs 3,800 crore across five real estate credit funds, delivering internal rate of returns in the range of 18–19%.
Investor confidence in ESG-integrated private credit continues to rise as the sector emerges as a meaningful solution to India’s real estate financing needs. The Indian real estate sector is projected to reach $1 trillion by 2030, contribute 13% to GDP, and is supported by strong indicators such as office leasing and investment inflows.