Arnya Real Estate Fund – Debt

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About Arnya Real Estate Fund - Debt

Arnya Real Estates Fund Advisors was established as an independent investment manager with the goal of making a significant impact in the real estate investment management industry in India. The founder, Sharad Mittal, played a key role in developing the real estate business at Motilal Oswal Real Estate, growing its investment AUM to approximately INR 7,150 Cr. The founding team brings over 100 years of collective experience in real estate investment management from leading institutions.

Fund Snapshot

Target Fund Size INR 1000 Cr +
Greenshoe of INR 1000 Cr
Fund Type SEBI registered AIF Category II
Target Return 20% Gross IRR
Tenure of Fund 7 Years from first closing date
Min. Commitment INR 1 Cr

Arnya Real Estate Fund- Debt Principles

At Arnya, they believe they can significantly enhance your portfolio with the following principles:

Real Focus: With their exclusive concentration on real estate as an asset class, they are uniquely positioned to help you capitalize on India’s real estate opportunities.

Real Independence: As an independent investment manager, they offer genuine innovation, avoid conflicts of interest, align investor-manager interests, and ensure longevity and autonomy.

Real Track Record: With over 20 years of experience, they have made 175 investments and achieved a 20%+ IRR across multiple exits.

About Arnya Real Estate Fund- Debt

  • Established as an independent investment manager with the aim of seizing opportunities in India’s real estate market and delivering superior returns for investors.
  • The founding team boasts over 100 years of combined experience in real estate investment management with leading institutions.
  • The team has managed an AUM exceeding INR 10,000 Cr, consistently generating superior risk-adjusted returns without losing capital in any deal.
  • Arnya Real Estate Fund – Debt is their inaugural fund, registered as a Category II Alternative Investment Fund (AIF) with SEBI, targeting a corpus of INR 1,000 Cr plus a greenshoe option of INR 1,000 Cr.
  • The fund will concentrate on investment opportunities in the residential real estate sector, primarily for early-stage growth capital.

What Makes India's Residential Real Estate a Prime Investment?

Significant Growth Expected: Residential real estate is projected to grow more than 5x between 2020 and 2030.

Capital-Intensive Nature: The residential real estate sector requires substantial upfront investments for land acquisition and project approvals.

Rising Capital Requirements: Estimates indicate that the capital needed for land acquisition in residential real estate will increase from approximately INR 0.8 Lakh Cr (USD 9 billion) in 2023 to around INR 2 Lakh Cr (USD 24 billion) by 2030.

Financing Gap: There is a significant gap between the demand for growth capital and the availability of financing from banks and NBFCs, positioning Alternative Investment Funds (AIFs) to play a crucial role in the growth of residential real estate in India.

Key Characteristics:

What type of investments does the fund focus on?

Arnya Real Estate Fund – Debt primarily focuses on debt and mezzanine investments in the residential real estate sector, particularly targeting early-stage growth capital

How does Arnya Real Estate Fund - Debt contribute to the Indian real estate market?

Arnya Real Estate Fund – Debt aims to seize opportunities in India’s real estate market by providing growth capital to the residential sector, thereby fueling development and contributing to economic growth.

What advantages does Arnya Real Estate Fund - Debt offer to investors?

Investors in Arnya Real Estate Fund – Debt benefit from exposure to a focused real estate investment strategy, potential for attractive returns with a targeted IRR of 20%, and the expertise of a seasoned investment management team.

The Arnya RealVantageTeam

(with 100+ years of experience in real estate investment management)

Mr. Sharad Mittal – Founder

Mr. Sharad Mittal, the founder, brings over 22 years of rich expertise in real estate investment, lending, and fundraising to the forefront. Notably, his tenure at MO Alternates saw the real estate business burgeon from its nascent stages to an impressive investment AUM of INR 7,150 crore. His leadership was pivotal in assembling a robust team and implementing streamlined processes, resulting in a commendable track record of successful investments and exits. Sharad’s adept management skills were evident in his handling of 9 stressed accounts during his time at Motilal Oswal, securing complete exits from 7 of them. Prior to his current venture, he held influential positions at renowned financial institutions like Motilal Oswal RE, ICICI Prudential AMC, ICICI Bank, ASK, and First Rand Bank. Furthermore, Sharad is actively involved in various industry bodies and forums, revered for his insightful thought leadership within the sector.

Top 5 reasons for the fund’s good performance

  1. Investment Manager with Proven Track Record:

   – The investment manager (IM) is dedicated exclusively to real estate investment management, ensuring no conflict of interest and complete alignment with investor interests.

   – The IM has a proven history, managing over INR 10,000 Cr and never losing capital.

  1. Identifying the Right Opportunities:

   – As a knowledge-based fund house, Arnya identifies investment opportunities with attractive entry points and favorable market conditions through deep analysis of emerging trends.

  1. No Name Lending:

   – Strong governance and streamlined processes for deal selection, including comprehensive due diligence (title, technical, corporate, financial, and forensic) ensure no name lending practices.

  1. Investment Structure with Proper Security and Enforcement Rights:

   – Focuses on debt investments with developers who have proven track records and establish robust security structures such as mortgages on project land, share pledges, corporate guarantees (CG), and personal guarantees (PG).

  1. Proactive Asset Management:

   – Engages in hands-on asset management with escrow control of project cash flows and regular business plan reviews.

   – Possesses the capability to manage stressed accounts and ensure complete resolution of such assets.

Advantages of Arnya Real Estate Fund- Debt:

– Independent Strategy: Offers innovative products and strategies within a bureaucracy-free environment.

– Alignment of Interest: Equity ownership by the investment manager aligns their interests with those of the investors, ensuring a focus on maximizing returns.

– Longevity & Continuity: The long-term presence of the manager ensures superior asset and risk management.

– No Conflicts of Interest: The ability to evaluate investment opportunities autonomously and independently eliminates potential conflicts of interest.

Product - AMC Category AUM (in Cr.) Performance 1M 3M 6M 1Y 2Y 3Y 5Y 10Y SI

ASK India Select Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 4-Jan-10
Multi Cap
(PMS)
2,808 Strategy 5.80 10.60 15.30 22.70 6.50 12.90 13.50 17.30 15.70
S&P BSE 500 8.00 12.40 18.50 26.50 15.20 20.40 17.60 16.10 12.80

ASK Indian Entrepreneur Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 25-Jan-10
Multi Cap
(PMS)
18,959 Strategy 3.70 7.20 10.00 20.50 5.00 13.80 14.80 18.40 17.60
BSE 500-TRI 8.00 12.40 18.50 26.50 15.20 20.40 17.60 16.10 13.10

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Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.