Developer Rustomjee Group will achieve a first close of Rs 450 crore for its alternative investment fund by November to fund redevelopment projects in the city, a top official said. First of the investments to be done by the AIF christened 'Mt K Kapital' will be in realty projects undertaken by the group itself, Rustomjee's Chairman and Managing Director Boman Irani.
The company in April announced the AIF, where a promoter goes to investors to raise money for raising capital for a specific purpose. Out then, it had mentioned that it will be raising over Rs 570 crore from the investors for the platform. Irani said it is targeting to raise Rs 790 crore through the AIF, which is a first of its kind for any developer.
"First fund is being raised for only Rustomjee projects as Rustomjee will be running about 7-9 redevelopments. The AIF is very specific to a market and a type of development only. So, there is almost a portfolio we are creating for the AIF only," Irani said. He said the equity component for the projects will come from the AIF's side, and also outlined the projects of varied sizes that are in the works.
The company is close to sealing a big cluster redevelopment in central Mumbai's Kalachowkie area which has 3,140 residents, Irani said, adding that the group's focus will be centred on redevelopment activity across the city going forward. He also made it clear that the group is not interested in the Kamathipura project which will come up in the financial capital's red-light area.
For the Dharavi redevelopment which seems to be getting a renewed thrust from the government, Irani said the ambitious project involving relocating dwellers in one of the biggest slum sprawls in the world requires a big consortium.
Rustomjee may join such a consortium eventually but may not take the lead role. He said the project requires organisations with various skill sets, including those who can redevelop, ones who can keep it well-oiled from a financial resource gathering perspective and others.
