Sundaram Finance Group Raising Fund to Invest in Green Real Estate Projects

Sundaram Finance Group's subsidiary, Sundaram Alternates Assets (SAA), intends to secure approximately Rs. 1,000 crore from international investors in order to finance environmentally friendly real estate ventures within India.

Vikaas M Sachdeva,Sundaram Alternates Assets managing director in an interview with PTI quoted, "This move reflects our commitment to build on our own track record, depth of underwriting and risk management skills in the ever-evolving landscape of Indian real estate credit market. He further said, Sundaram Finance Group's subsidiary, Sundaram Alternates Assets (SAA), intends to secure approximately Rs. 1,000 crore from international investors in order to finance environmentally friendly real estate ventures within India.

Over the past year, SAA has not only revamped its high-yield credit funds to generate genuine alpha from its performing credit business, but it has also embraced a strong ESG and climate impact framework as a noteworthy investor endeavor.

SAA director (alternative credit) Karthik Athreya, quoted, "We are expecting to close the fund (Series IV real estate credit fund) at between Rs. 1,000-1,200 crore to fund green real estate projects."

He also added that, the company is presently raising funds from international investors, including NRIs in the Gulf region, for its Series IV real estate credit fund.

Athreya shared the past records and explained that, the firm has raised and deployed about Rs. 3,000 crore in its private credit business over the last 5-6 years. 

On the sidelines of Dubai Alternative Investment Summit, he added  the past funds have consistently delivered 18-20 percent portfolio returns and are currently extracting about 17 percent gross investor returns.