Introduction
Shivalik Group, a real estate developer in Ahmedabad, is expanding rapidly in Ahmedabad and Gandhinagar districts. Launched an Alternative Investment Fund (AIF) to raise ₹300 crores in these areas.
“We are probably the first real estate developer in Gujarat to launch an AIF,” said Chitrak Shah, founder of Shivalik Group. The developer has recently received approval from the Securities Exchange Board of India (SEBI) for its first fund Shivalik Investment Fund. The proposed Category-II AIF proposes to raise ₹300 crore through private placement. A ₹150-crore green shoe option of this is exercised at the discretion of the investment manager.
Raising AIF Funds From Investors
AIF raises funds from domestic investors, including individuals and family offices, HUFs, high net worth individuals, private firms, and other corporate entities. “We are getting a lot of inquiries from high net worth individuals and diaspora Indians who are interested in investing in Gujarat’s growth story. So, we mobilized this fund,” Shah said.
AIF, or Alternative Investment Fund, has decided to develop the upcoming areas of Ahmedabad, Sanand and Gandhinagar. It has a comprehensive investment plan to allocate these funds. The fund intends to invest a substantial portion of its funds in these areas, 50 to 60%, to support their growth and development.
In addition, AIF has also identified other viable projects outside the Shivlik Group in line with its investment objectives. About 30% of the funds are earmarked for these projects. This diversification of the portfolio aims to provide investors with better risk and return.
Ahmedabad and Gandhinagar Districts are Developing.
Ahmedabad-based real estate developer Shivalik Group is expanding rapidly in the Ahmedabad and Gandhinagar districts. It has taken an important step by launching an Alternative Investment Fund (AIF) to mobilize ₹300 crore in these areas. The move marks a significant milestone for the first real estate developer to enter the AIF space in Gujarat.
The newly proposed Shivalik Investment Fund, approved by the Securities Exchange Board of India (SEBI), aims to raise funds primarily from domestic investors. These investors include individuals, family offices, and HUFs (Hindu Undivided Families).
High net worth individuals, private firms, and other corporate entities. The objective of the fund is twofold. To generate superior long-term capital appreciation from investments in companies in the real estate sector and provide current income to its investors.
Aim to Promote Innovative Ideas: AIF
The AIF also recognizes the importance of promoting innovation and entrepreneurship. Allows a portion of the funds to support start-up companies. This investment strategy aims to create a supportive ecosystem for budding entrepreneurs. It aims to encourage innovative ideas.
Overall, AIF’s investment plan is sound and aims to support the development of upcoming areas, diversify the portfolio, and encourage innovation and entrepreneurship. “We plan to give our investors an annual return of 17–18 percent,” Shah added.
The fund’s primary objective is to provide current income to its investors. Generating superior long-term capital appreciation from investing in companies in the real estate sector. “We are planning to deliver 17-18 per cent annual returns to our investors,” Shah said. The fund has a life span of more than seven years.
Conclusion
Ahmedabad-based real estate developer Shivalik Group has launched an Alternative Investment Fund (AIF) to raise ₹300 crore in fast-growing areas of Ahmedabad and Gandhinagar districts. The fund’s primary objective is to generate superior long-term capital appreciation from investment in companies in the real estate sector. For more such real estate information, visit our Openplot.com. It will give you accurate information.