Fund Blues
Forbes India|December 7, 2018

Eight years on, Aditya Birla Real Estate Fund is yet to return money to its investors even as it looks to raise its second fund

Pooja Sarkar
Fund Blues

The year was 2009. Indian real estate was in a shambles, as were real estate private equity funds, especially foreign ones, which provided an opportunity for homegrown firms to launch their funds. One of them was the Aditya Birla Group-backed Aditya Birla Real Estate Fund (ABREF).

In 2010, ABREF raised 1,056 crore; but in August 2018, when the fund’s life cycle came to a close, it was yet to exit most of its investments or return even the principal amount.

ABREF was raised by Aditya Birla Sun Life AMC Ltd, previously known as Birla Sun Life Asset Management Co Ltd. The fund’s documents show that it was primarily raised on the assumption that demand for residential realty would reach 7.5 million units by 2013, led by Mumbai, Bengaluru and Hyderabad.

By 2015, the fund had invested 44 percent of its capital in Mumbai and 28 percent each in the National Capital Region (NCR) and Chennai. It had a mandate to invest in equity, equity-related and debt instruments of companies engaged in construction and development of real estate assets, including residential, commercial, retail and other projects. It, however, invested only in residential projects.

Ironically, though, even as the fund’s private placement document says “residential realty— the juicy bit”, there is no juice for the investors of this fund.

According to documents accessed by Forbes India, ABREF’s life tenure was six years, with two one-year extensions, which ended this August. It was a close-ended fund, meaning the capital had to be returned by the end of its life. In August, ABREF notified its investors that due to the global financial crisis and subdued real estate markets, coupled with a liquidity crunch, the fund had been unable to liquidate its position and return capital to investors. And that they were seeking an extension.

هذه القصة مأخوذة من طبعة December 7, 2018 من Forbes India.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة December 7, 2018 من Forbes India.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من FORBES INDIA مشاهدة الكل
Home-Cooked Meal Is Now Greatly Valued
Forbes India

Home-Cooked Meal Is Now Greatly Valued

The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients

time-read
8 mins  |
May 21, 2021
Paytm 3.0 - Reaching Near Breakeven In Two Years
Forbes India

Paytm 3.0 - Reaching Near Breakeven In Two Years

As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years

time-read
10+ mins  |
June 4, 2021
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Forbes India

THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN

Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse

time-read
8 mins  |
May 21, 2021
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Forbes India

LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE

Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment

time-read
7 mins  |
May 21, 2021
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Forbes India

PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST

Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground

time-read
9 mins  |
May 21, 2021
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
Forbes India

INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR

While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term

time-read
8 mins  |
May 21, 2021
DIGITALISATION WILL HELP IN VALUE CREATION
Forbes India

DIGITALISATION WILL HELP IN VALUE CREATION

As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India

time-read
8 mins  |
May 21, 2021
Industry 4.0: Climate Revolution?
Forbes India

Industry 4.0: Climate Revolution?

Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent

time-read
10 mins  |
June 4, 2021
EV Dream Still Miles Away
Forbes India

EV Dream Still Miles Away

Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure

time-read
6 mins  |
June 4, 2021
Living Waters
Forbes India

Living Waters

A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet

time-read
4 mins  |
June 4, 2021