Edelweiss Alternatives Plans to Raise up to 5k cr Via its Rental Yield Fund

Fund looks to acquire office spaces across major six cities to build 10 m sq ft portfolio in 3 yr

Bengaluru Mumbai: Edelweiss Alternatives, the arm of the Edelweiss Group dedicated to alternative assets, is looking to raise up to 5,000 crore from both onshore and offshore investors through its new rental yield plus fund.

The fund will focus on India opportunity to acquire quality commercial offices across major 6 cities. It will provide attractive investment opportunities, as a pre-REITs strategy, to investors looking to generate rental income and capital appreciation.

This fund will primarily target Southern markets such as Bangalore and Hyderabad, alongside major markets like Delhi-NCR and Mum- bai, with plans to build a 10 million sq ft portfolio within three years.

“We plan to invest between 400 crore to 2,000 crore per transaction, focusing on core office assets and older buildings with potential for value addition. There is a significant market for upgraded office spaces,’ said Subahoo Chordia, president & head of real assets at Edelweiss Alternatives. The fund’s second phase will expand into new asset classes, including data centers and warehousing, alongside office assets. It aims to target properties ranging from 500,000 sq ft to 1.5 million sq ft in the office segment. ”

Portfolio Expansion

The fund targets southern markets like Bangalore, Hyderabad & Delhi-NCR, Mumbai

‘Plans to Invest 400 to   2,000 crore in core office assets, says head of Edelweiss Alternatives

• Plans expansion into data centers, warehousing, and larger office segments

India’s market promises appealing returns amid economic growth projections

We have over a decade of experience across Indian private debt and real assets. Our strong on-ground presence enables us to source and structure unique deals. With robust asset management and operating capabilities, we actively monitor assets and proactively engage with our investee companies,” said 1 Chordia.

India’s market presents appealing risk- adjusted returns for private debt and real asset investors, expected to grow significantly alongside the economy reaching $5 trillion.

The evolving regulatory landscapo enables more capital infusion In- to the Indian real estate sector, opening up substantial investment opportunities for alternative asset ma nagers,” said Chordia.

Institutional investors are expressing confidence in the office sector due to its promising growth prospects and resilient demand, with notable global funds actively involved in significant deals. Prominent global funds such as GIC, Capita Land India Trust, Bain Capital, CPPIB, and PAG Credit and Markets. remained actively engaged in the market, finalising significant deals.

“Investors with patient long term capital stand to immensely benefit from investment in alternative asset opportunities that India offers. Managed investment vehicles have emerged as the preferred option for long-term private market investments,” said Sankey Prasad, CMD, Colliers India.

Source- The Economic Times