Arnya Real Estate Fund Advisors Launches INR 1000 Crore Real Estate Debt Fund to Invest in Top Indian Cities

Mumbai, India – Arnya Real Estate Fund Advisors, an alternative investment management firm, is set to raise over ₹1,000 crore through its first-ever real estate debt fund to invest in India’s leading eight property markets. The fund, named Arnya Real Estate Fund—Debt, comes with an additional green-shoe option of ₹1,000 crore, allowing the firm to expand its investment potential. The primary focus will be on early-stage growth investments, predominantly in residential projects, with a selective mix of commercial components.

Strong Investor Backing and Commitments

Arnya has already secured commitments of nearly ₹375 crore from a diverse group of investors, including domestic family offices, ultra-high-net-worth individuals (UHNWIs), and high-net-worth individuals (HNIs). Sharad Mittal, founder and CEO of Arnya Real Estate Fund Advisors, remarked that this initial close reflects the trust placed in them by investors. He reiterated the firm’s commitment to building an independent investment management company with a comprehensive range of real estate-focused products across debt, rental, and equity.

Targeting Tier-I Developers with Proven Track Records

The Arnya Real Estate Fund—Debt is registered as a Category II Alternative Investment Fund (AIF) with market regulator SEBI. The fund is led by an experienced team of professionals and will focus on working with tier-I developers who have established records of strong execution and sales. Leveraging its market expertise and strategic relationships, the fund is designed to deliver superior performance and long-term value to its investors.

Aiming for Over 20% Returns on Mid-Market Projects

The fund is targeting an internal rate of return (IRR) of over 20% by investing in mid-market projects across India’s top cities. Mittal indicated that they are actively working on a robust deal pipeline, with the first transaction expected to close within a month. The full fundraising process is anticipated to conclude by the end of the year.

India’s Residential Real Estate Boom

The Indian residential real estate sector, spanning affordable, mid-income, and premium segments, has seen significant growth in recent years. A surge in demand for homes, combined with policy reforms, urbanization, and stable interest rates, has bolstered sales across key cities. As disposable incomes rise, homebuyers are increasingly investing in real estate, contributing to the sector's sustained growth.

Institutional Investors Eye Long-Term Opportunities

Institutional investors are recognizing the long-term potential of Indian residential real estate, particularly as regulatory frameworks like the Real Estate Regulatory Authority (RERA) and tax reforms bring greater transparency and organization to the market. These improvements have made real estate an increasingly attractive asset class for both global and domestic investors.