MUMBAI, Apr 2: Axis Asset Management Company has raised commitments of Rs 400 crore from domestic
institutions and high networth individuals which will be loaned to realty companies across the major cities.
The announcement comes at a time when the realty sector is passing through a tough phase with worries on the
residential side which is grappling with unsold inventories. Axis AMC managing director for real estate Balaji
Rao acknowledged the broader worries, saying developers have
faced liquidity crunch and had to change business models due
to implementation of the GST and Rera.
“Real estate business has changed and we are looking
to work with developers who can adapt to it,” he said, adding
this is an “opportune moment” for value investors to identify
and back realty players with strong systems and strategies.
The commitments for the Axis Rera Opportunities Fund-I
have come from domestic institutions, high networth
individuals and from Axis AMC, the company said in an official
statement Tuesday.
The fund will be targeting investments through
structured debt route in top eight cities and will look for
developers with an established track record of delivery who
show a potential for future growth, it said.
The company statement said real estate is an important asset class for investor and demand for mid-income and
affordable housing is likely to continue to rise especially on
Government initiatives.
Increasing per capita incomes and growing aspirations in the mid-market segment will fuel a potential boom, it claimed. (PTI)
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