Two Kolkata developers have decided to build their own fund. Keventer Group and Saroj Poddar Group launched a ₹400 crore Category II Alternative Investment Fund (AIF) on 2 October, and say it is the first such fund from a West Bengal real estate developer.
How the fund is built
The fund is called Poddar Keventer Real Estate Fund – Scheme I. It has a ₹400 crore target corpus and a ₹200 crore greenshoe option, which can take the total to ₹600 crore. Poddar Keventer Capital Advisors, a joint venture of the two groups, is behind the launch, and it will manage the fund. The tie-up brings together the real estate interests of both groups.
This is a debt fund. It will lend against security rather than take equity in projects. It targets a gross IRR of 18-22 per cent before expenses. Gross returns are measured before costs, so investors' net returns will be lower. The range is also a target, not a promise. Actual returns depend on how fast projects sell and how quickly loans are repaid.
The sponsors have put in ₹80 crore of their own money, which is 20 per cent of the target corpus. They say this shows they are aligned with investors. The numbers fit together. The greenshoe adds 50 per cent to the base target. If the fund reaches ₹600 crore, the sponsors' share falls to about 13 per cent unless they add more.
Where the money will go
The fund will finance residential projects in Delhi-NCR and West Bengal, across the ultra-luxury, premium and mid-market segments. Gaurav Agrawal, head of operations at Poddar Keventer, said each project will be assessed on its fundamentals, the promoter's capability and its cash flows. He added that security arrangements and ongoing monitoring will be central to the strategy.
Mayank Jalan, Chairman and Managing Director of Keventer Group, said infrastructure growth in both regions, changing buyer aspirations and demand for quality housing are creating opportunities. Akshay Poddar, promoter of Saroj Poddar Group, said India's AIF ecosystem is developing fast and real estate has become a significant segment within it. He named governance, disciplined capital allocation and long-term alignment with investors as the platform's priorities.
