Mumbai: Aditya Birla Sun Life AMC Limited (ABSLAMC) has collaborated with BentallGreenOak (BGO), a global real estate investment management advisor, to form a structured credit investment vehicle.
The investment vehicle will target structured debt investments in post-approval real estate projects primarily in tier 1 metropolitan locations. As part of the collaboration, ABSLAMC will rely on the advice from BGO while recommending investment opportunities to the investment committee.
The fund is incorporated as an alternative investment fund which shall invest in real estate projects in metro cities. The fund shall be investing in debt instruments of entities engaged in real estate projects. Since both entities have been underwriting and managing funds and portfolios of high net worth investors, the collaboration of BGO and Aditya Birla jointly managing the investor portfolio and underwriting investments shall benefit the investors by targeting higher returns with minimal risks. Further the collaboration shall benefit Aditya Birla by providing an access to the offshore capital/relations of BGO and procure the global practices to be adopted for managing investments/underwriting. BGO shall benefit from the collaboration by attaining local knowledge on fund investments and access to relations of Aditya Birla.
Talking to Bizz Buzz, Balasubramanian A, MD and CEO, Aditya Birla Sun Life AMC, said: “The target of the fund is to raise Rs 750 crore plus Rs 250 crore in green shoe option. There has been, he said, a robust demand in mid income projects post Covid and this segment has been consistently driving sales across the metro cities where the fund will be investing.