AIF Talk: This fund manager with over Rs 200 cr in AUM sees Indian real estate to grow $1 trillion by 2030

In an interview with ETMarkets, Inamdar said: “The sector’s growth has long-term support from India’s rapid urbanization, sustained job formation and steady GDP growth” Edited excerpts:
How much AUM are you managing?
TriVeda Capital is a SEBI-registered Category II Alternative Investment Fund (AIF) that invests in residential real estate in South Indian metros.

The first Scheme, Bangalore Opportunities Series 1 (BOS1) is an INR 200 Cr Fund with a green-shoe option of additional INR 50 Cr, with an emphasis on Bangalore’s plotted residential developments with affordable ticket sizes, strong sales velocity and quick execution.

The investment strategy focuses on high-demand residential real estate assets, risk-adjusted execution, and downside-protected deal structures to deliver attractive investor returns.

Thanks for being part of the segment. This is an interesting space and TriVeda comes with over 40 years of track record investing into this market which is fabulous. How is India real estate market looking?
The Indian real estate sector is experiencing a significant boost from several key macro-economic factors and is expected to grow to $1 trillion by 2030.

The sector’s growth has long-term support from India’s rapid urbanization, sustained job formation and steady GDP growth.

TriVeda’s AIF offering comes at the right time, with India’s residential real estate market experiencing stellar double-digit growth (India’s top eight property markets witnessed sales of over 3.12 lakh units in 2022, resulting in high 34% year-over-year growth).

We are big believers of the Indian real estate growth story. We have been involved in real estate development and investing over the last 40 years, and now bring our collective experience to present a transparently governed, SEBI regulated investment vehicle to bring in investor participation in the sector.

What is your view on the India AIF industry for the next 5-10 years across segments?
In 2012, SEBI introduced regulations that allowed AIFs to operate in India. Since then, the number of AIFs in India has increased exponentially.

According to SEBI, the total assets under management (AUM) of AIFs in India stood at INR 6.9 trillion in 2022, with a 7x growth from INR 1 trillion in 2017. The tremendous growth of AIFs can be attributed to the efficient investment experience, regulated platform and wide array of investment structures and themes.

AIFs have been instrumental in investments across segments including start-ups, social infrastructure, real estate and private equity.

AIFs are becoming increasingly popular with investors due to rise in demand for regulated vehicles, and portfolio diversification through various investment themes.

Real estate-focused AIFs are SEBI-regulated investment vehicles that invest in different types of real estate assets across the country, offering access to unique investment opportunities.

How do you pick properties for investment?
TriVeda Capital’s first Scheme, Bangalore Opportunity Series I (BOSI) has an investment strategy focused on plotted development assets in Bangalore’s growth corridors. The plotted segment has faster project turnaround time, lower capital requirement and a low-risk execution strategy, facilitating attractive investor returns.

The Fund invests in mature micro-markets with high demand and absorption, along with visibility of connectivity and social infrastructure. The projects typically cater to mid-income strata, with superior value proposition and the right pricing.

What is unique about Real Estate investing compared to other investing segments such as equity or fixed income?

A) Real estate investments are not linked to market movements, hence are less volatile and liquid compared to asset classes such as stocks and equity-linked products.

They offer higher risk-adjusted returns because investment is in physical assets, along with superior cashflow generation potential through rent-yielding assets.

In India, real estate investments are largely under-tapped, and real estate AIFs offer a transparent, SEBI regulated platform for investors to participate in the real estate sector.

Investing in Indian real estate offers potential for enormous capital appreciation, along with generation of consistent rental income.

Due to the India’s growing working population and expanding metropolitan centers, there is significant demand for rental properties, which enables investors to benefit from consistent cash flow.

Moreover, the Indian real estate market has witnessed various policy reforms in recent years, aimed at promoting transparency and protecting investor interests.

The implementation of Real Estate Investment Trusts (REITs) and the introduction of the Real Estate (Regulation and Development) Act (RERA), enhance overall investor confidence in the sector.

If someone plans to invest in real estate and not own the property – how is TriVeda enabling investor participation in India’s attractive real estate growth story?
The Indian real estate market has always been a favored investment option for High Net Worth Individuals (HNIs) and Ultra-High Net Worth Individuals (UHNIs).

However, investing in real estate has never been an easy task. There are operational hassles, documentation, and asset management complexities that investors have to deal with.

Real estate-focused Alternative Investment Funds (AIFs) are emerging as an excellent investment option for HNIs and UHNIs looking to invest in real estate with structured and well-designed investment themes.

Real estate-focused AIFs are SEBI-regulated investment vehicles that invest primarily in Indian real estate assets.

They offer several benefits to investors including transparent governance, portfolio diversification, tax-friendly structures and hassle-free investment experience.

AIFs invest in different types of real estate assets across the country, offering access to unique investment opportunities.

How Real Estate AIFs are Integrating ESG in Global Asset Management
Real Estate Alternative Investment Funds (AIFs) are increasingly integrating Environmental, Social, and Governance (ESG) principles into global asset management practices.

AIFs are incorporating ESG considerations by assessing the environmental impact of properties, promoting sustainable building practices, and prioritizing social responsibility. They are incorporating energy-efficient features, green building certifications, and renewable energy sources into real estate projects.

Additionally, AIFs are focusing on social aspects such as affordable housing initiatives and community engagement. Governance is also addressed through transparent reporting, risk management frameworks, and board-level oversight.

By including ESG into real estate investment decisions, AIFs are aligning with global sustainability goals, enhancing long-term value creation, and attracting socially conscious investors seeking both financial returns and positive environmental and social impact.

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