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 areas. As part of the collaboration, ABSLAMC will draw on advice from BGO while recommending opportunities for investment to the investment committee.
The fund is set up as an alternative investment fund that will invest in real estate projects in metropolitan areas. The fund will invest in debt securities of entities engaged in real estate projects. Since both entities underwrite and manage funds and portfolios of high net worth investors, the collaboration of BGO and Aditya Birla who jointly manage the portfolio of investors and underwrite investments will benefit investors by targeting higher returns with minimal risks. In addition, the collaboration will benefit Aditya Birla by providing access to BGO’s offshore capital/relationships and providing global practices to adopt for investment/underwriting management. BGO will benefit from the collaboration by gaining local knowledge on fund investments and access to Aditya Birla connections.
Speaking to Bizz Buzz, Balasubramanian A, MD and CEO, Aditya Birla Sun Life AMC said: “The fund’s target is to raise Rs 750 crore plus Rs 250 crore in green shoe option. There have been, he said, strong demand in post-Covid middle-income projects and this segment has consistently driven sales in the metropolitan cities where the fund will invest.