The real estate market is witnessing a resurgence, and investors are taking notice. Arnya RealEstates Fund Advisors, an investment firm led by former Motilal Oswal Alternates’ executive Sharad Mittal, has invested in a residential housing project being developed by Chennai-based company Casagrand. * Key Investment Details:
+ Investment amount: Rs 130 crore ($15.1 million)
+ Project location: Southern Bengaluru
+ Developer: Casagrand
This significant investment marks Arnya RealEstates Fund Advisors’ second deal from its maiden high-yield debt fund. The firm’s founder and CEO, Sharad Mittal, expressed excitement about this development, stating, “This marks our second investment from our maiden high-yield debt fund.”
The Arnya Real Estate Fund – Debt
The firm rolled out its maiden vehicle, Arnya Real Estate Fund – Debt, in April last year with a target corpus of Rs 1,000 crore and a greenshoe option of an equal amount. In December, VCCircle reported that the fund manager had received commitments of about Rs 500 crore for the fund after marking its first close last September at Rs 375 crore. *
- Target corpus: Rs 1,000 crore
- Greenshoe option: Equal amount
- Commitments received: About Rs 500 crore
- First close: Rs 375 crore
Mittal said at the time that the firm planned to close three to four transactions by March 2025 to take Arnya’s deployment to about Rs 250-300 crore. During the first close announcement in September, Mittal stated that the firm’s larger plan was to close about 15-20 investments in the next 18 months.
The Fund’s Investment Strategy
The fund’s investment strategy is to predominantly focus on investing in residential real estate, typically mid-income housing during the pre-RERA (Real Estate Regulatory Authority) registration phase, often called the land acquisition stage, with ticket sizes in the range of Rs 60-100 crore. The segment may comprise about 80% of the fund’s portfolio. *
| Investment Focus | Residential Real Estate | Mid-income Housing | Pre-RERA Registration Phase | Land Acquisition Stage |
| Target Ticket Size | Rs 60-100 crore |
Apart from its primary mid-income housing investment strategy, the fund may also explore luxury real estate selectively. Mittal said Arnya is also considering a up to 20% allocation to small office buildings, typically commercial or office real estate used for companies requiring smaller office spaces as compared to the large IT park campuses required in cities such as Bengaluru and Hyderabad.
A New Chapter for Arnya RealEstates Fund Advisors
Arnya was set up in 2023 after Mittal’s exit from Motilal Oswal Real Estate following more than a decade-long stint as the chief executive of the Mumbai-based private equity investor. *
“I have always believed in the potential of the Indian real estate sector, and I am excited to be a part of this journey with Casagrand.” – Sharad Mittal
The Arnya team’s expansion started in December 2023 with the appointment of Amit Dassani and Nikunj Pugalia, VCCircle first reported. Pugalia, a chartered accountant by qualification, is also a former Motilal Oswal Financial Services executive and spent over a decade at the company. His previous stint was at Neo Wealth and Asset Management where he was working as deputy CFO. Dassani has an experience of over 18 years in wealth management for ultra-HNIs and family offices. Prior to joining Arnya, he was executive director – private clients at LGT Wealth India. He has also been a part of IIFL Wealth. The firm’s new management team brings a wealth of experience and expertise to the table, making it an exciting time for Arnya RealEstates Fund Advisors.
Conclusion
The investment by Arnya RealEstates Fund Advisors in Casagrand’s residential housing project marks a fresh start for the firm, with a focus on mid-income housing and small office buildings. With a strong team in place and a clear investment strategy, Arnya is poised to make a significant impact in the Indian real estate market.
