Aditya Birla Sun Life AMC and BentallGreenOak are planning to raise around Rs 1,000 crore through their joint platform for structured credit investments in India.
The fund including a green-shoe option worth up to Rs 250 crore will be investing in real estate projects in key property markets including metro cities.
The subsidiary of Aditya Birla Capital and investment manager to Aditya Birla Sun Life Mutual Fund has entered into a collaboration with the Toronto-headquartered company 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 locations.
“We look forward to this association with BentallGreenOak to develop a strong credit platform for the real estate sector. This enables us to leverage each other’s strengths and develop a formidable partnership. The real estate sector is seeing a strong revival with relatively low housing loan interest rates and property prices largely remaining flat,” said A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC.
He believes substantial savings due to lower interest rates and stagnant property prices will aid in affordability and further lead to higher demand, especially in the residential real estate segment.
The collaboration will bring together both established investment managers’ individual research, underwriting and asset management capabilities, and extensive track records in both the domestic and international markets.
“The residential real estate sector in India is structurally attractive, driven by favourable demographics, a healthy domestic talent pool, relatively low mortgage rates and improving transparency,” said Sonny Kalsi, Co-CEO, BentallGreenOak. “We are committed to investing our global resources and capabilities to build this partnership and deliver access to exciting new investment avenues for our global investors and clients.”
As part of the collaboration, Aditya Birla Sun Life AMC will rely on the advice from BentallGreenOak while recommending investment opportunities to the investment committee.
The alliance is expected to provide Aditya Birla Sun Life AMC access to the offshore capital and BentallGreenOak’s relations apart from procuring the global practices to be adopted for managing investments and underwriting. BentallGreenOak is expected to benefit by attaining local knowledge on fund investments and access to relations of Aditya Birla Sun Life AMC.
Established in 1994, Aditya Birla Sun Life AMC is a joint venture between Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc.
Aditya Birla Sun Life AMC is the investment manager of Aditya Birla Sun Life Mutual Fund and also operates multiple alternate strategies including portfolio management services, real estate investments and alternative investment funds. It is the fourth largest asset manager in India, with around Rs 2.96 lakh crore of assets under management as on March end.
Apart from a global real estate investment management advisor, BentallGreenOak is a real estate services provider. It serves over 750 institutional clients with around $78 billion of assets under management as on March end. BentallGreenOak is a part of SLC Management, which is the alternatives asset management business of Sun Life.